I was recently told good news, to which I responded "Bene" in the same way that I would say "Nice" in English after having heard good news. Is this an appropriate word choice? I would have found it strange to use bello or buono in this situation.
Your answer was correct, since bene could fit in the context.
Also bello or buono could be a correct answer, but it mostly depend on the kind of question.
Obviously depending on how good are the news for you, you may have expressed with different words and voice intonation.
For example you could also have answered with: