Stocks rise on US housing revival

Good news about the US economy helped Asian stock markets rise today, although lingering fears about Europe’s ability to tame its debt turmoil kept gains in check.

US government figures showed that durable goods orders rose by 1.1% in May after two months of declines.

On top of that, a report showed that pending home sales jumped in May, the latest signal that the US housing market may be improving in many regions following a slump of more than six years.

A recovery in the US housing market is considered one of the key elements toward a stable and long-lasting economic recovery and it helped investors brush aside ongoing worries about Europe’s debt crisis.

Japan’s Nikkei 225 index rose 0.9% to 8,810.21 and Australia’s S&P/ASX 200 gained 0.2% to 4,051.70. Benchmarks in Taiwan and Singapore also rose.

But Chinese shares fell. Hong Kong’s Hang Seng was marginally lower at 19,166.82. On the mainland, the Shanghai Composite Index lost 0.3% to 2,210.92.

South Korea’s Kospi fell 0.3% to 1,812.42.