Singapore : Asian stocks rose last week, reversing three consecutive weeks of declines, after US economic reports and eased concern over Eur-ope's sovereign debt crisis added to confidence in the global economic recovery.

Honda Motor Co, the Japanese carmaker which receives 80 per cent of its sales abroad, gained 2.6 per cent in Tokyo. James Hardie Industries SE, the biggest seller of home siding in the US, soared 16 per cent in Sydney as the National Association of Realtors said purchases of existing homes in the US unexpectedly jumped. HSBC Holdings Plc, Europe's biggest bank, advanced 1.8 in Hong Kong after European government officials threw debt-strapped Ireland a lifeline.

Jobless benefits

The MSCI Asia Pacific Index rose 3.5 per cent to 133.44 last week, reversing three consecutive weeks of declines. Reports in the US showed consumer confidence rose to the highest level in five months in November and jobless benefits over the past month on average dropped to a two-year low.

"The economic data is clearly improving," said Nader Naeimi, a Sydney-based strategist at AMP Capital Investors Ltd., which manages about $93 billion (DhDh341 billion) and is a unit of AMP Ltd, Australia's second-largest asset manager. "US housing is showing signs of life and the employment trend is finally looking encouraging. The easing of European debt concerns is releasing a handbrake on markets."

In Japan, the Nikkei 225 Stock Average gained 1.4 per cent, its fifth straight weekly advance, while Australia's S&P/ASX 200 Index climbed 2.1 per cent.

South Korea's Kospi index gained 2.9 per cent last week, even as tensions escalated in the region following an attack by North Korea on South Korea.

Shift

Hong Kong's Hang Seng Index rose 1.9 per cent. The Shanghai Composite Index retreated 1 per cent, its fourth week of declines.

China will shift to a "prudent" monetary policy from a "moderately loose" one that has been in place since late 2008, the state-run Xinhua News Agency said after a meeting of the Communist Party's Politburo.

All ten industry groups on the MSCI Asia Pacific Index rose last week, led by a 4.7 per cent increase from information technology shares, followed by material companies.

Honda, Japan's second-largest automaker by market value, gained 2.6 per cent to 3,155 yen last week. James Hardie, which receives 71 per cent of its revenue from the US, surged 16 per cent to A$6.20. BHP Billiton Ltd the world's biggest mining company, advanced 3.2 per cent to A$44.59.

Reports in the US showed existing home sales jumped, consumer spending and confidence rose and payrolls grew, adding to speculation earnings growth will outweigh China's measures to tackle the fastest inflation in two years,.