Asian stocks gain after US home sales rebound, easing worries about recovery

Asian stocks gain after US home sales rebound

TOKYO — Most Asian stock markets were moderately higher Tuesday as a rebound in U.S. new home sales helped ease lingering worries over the strength of the global economic recovery.

The better-than-expected home sales for June lifted Wall Street though the figures come with a caveat: U.S. home sales are still down 72 percent from their peak annual rate of 1.39 million in July 2005.

Japan’s benchmark Nikkei 225 stock average added 12.77 points, or 0.1 percent, to 9,516.43 in the morning session. Japanese exporters were under pressure due to a strong yen, which hurts them as it cuts their overseas income. Investors also took a wait-and-see stance ahead of upcoming releases of Japanese corporate earnings results.

South Korea’s Kospi rose 0.3 percent to 1,774.23 and Australia’s S&P/ASX 200 was up 0.4 percent at 4,505.30.

Elsewhere, Hong Kong’s Hang Seng climbed 0.2 percent to 20,862.23 while markets in Singapore, Malaysia and Indonesia also posted gains. China’s Shanghai Composite Index fell 0.4 percent to 2,579.50. Benchmarks in Taiwan and New Zealand also lost ground.

In New York, the Dow Jones industrial average rose 100.81 points, or 1 percent, to 10,525.43 Monday, up for the third straight trading session, as investors welcomed better-than-expected new home sales in June.

The Commerce Department said Monday the sales jumped nearly 24 percent last month to an annual rate of 330,000 units, more than economists expected. The June data marked a rebound in sales from a record low in May of 267,000 units.

May’s number, which was revised downward, marked the slowest pace in records dating back to 1963. Sales for April and March were also revised downward.

Despite June’s increase, U.S. new home sales are far down from their peak as high unemployment, slow job growth and tight credit have kept Americans from buying homes.

In currencies, the dollar was unchanged at 86.93 yen. The euro rose to $1.3011 from $1.2986.

Benchmark crude for September delivery was down 1 cent at $78.97 in electronic trading on the New York Mercantile Exchange.