Hong Kong stocks closed higher on Tuesday, bouncing back from losses in the last two sessions, as sentiment improved due to China's upbeat manufacturing data.

The Hang Seng Index added 0.4%, or 87.26 points, to finish at 23,206.84. The Hang Seng China Enterprises Index gained 0.2%, or 20.79 points, to end at 8,537.34.

The Caixin China General Manufacturing PMI climbed to 51.2 in March from 50.8 in February, according to a Tuesday release by Caixin and S&P Global.

The latest print was the highest reading since November 2024, surpassing analysts' expectations of 51.1 in a Reuters poll.

The expansion was driven by a sustained rise in new orders, which increased factory activity and lifted employment levels. On the price front, input costs fell for the first time since September.

"China's economic data is improving, but at a very slow pace," Yan Zhaojun, an analyst at Zhongtai Securities, was quoted by the South China Morning Post as saying.

The development overshadowed concerns about the reciprocal tariffs expected to be announced by US President Donald Trump on Wednesday.

In corporate news, shares of XPeng (HKG:9868) closed 6% higher after the electric vehicle maker said it sold 33,205 units in March, up 268% year-over-year.