Most Asian stock indices surged due to the positive U.S. housing data, following the U.S. indices. The U.S. new home sales increased 6.4% in April to a seasonally adjusted annual rate of 433,000 units. March's figure was revised up to 407,000 from 384,000. Analysts had expected a gain to 425,000.

The Japanese index Nikkei 225 has benefited from the weak yen.

Indexes on the close:

Nikkei 225                      14,602.52              +140.35        +0.97%

Hang Seng                      22,963.18                    -2.68        -0.01%

Shanghai Composite         2,041.48                 +6.91         +0.34%

Dainippon Sumitomo Pharma Co. slid 21% after the company suspended its study on an experimental drug for colorectal cancer.