News is a module as such it doesn't make 'pages' with content, you add it's content in News admin then call {news} in a page or template, and it does use pretty URLs if you set them up right...
Other than that I'm not sure what you're talking about, maybe a clearer explanation of what function you are expecting would help...
Routing & news module pretty URL under Nginx
Re: Routing & news module pretty URL under Nginx
Have you updated the routing tables?
Site Admin->System Maintenance->Cache and Content tab, Update Routes
Site Admin->System Maintenance->Cache and Content tab, Update Routes