Chinese Stocks Bounce Back Amid Manufacturing Surge

China and Hong Kong stocks rebounded as Chinese manufacturing activity hit a four-month high. The CSI300 and Hang Seng indices saw gains, with healthcare leading. Military drills around Taiwan boosted the defense sector. Uncertainty remains ahead of U.S. tariff announcements.

In a positive turn for the Chinese and Hong Kong stock markets, indices surged on Tuesday following the release of promising manufacturing data. The figures revealed a four-month high in Chinese manufacturing activity, sparking optimism among investors.

China's blue-chip CSI300 index increased by 0.29%, while the Shanghai Composite index rose by 0.59%, recovering from near one-month lows experienced in the previous session. Healthcare stocks led the charge with a 3.4% increase, and the defense sector saw gains after military exercises commenced near Taiwan.

As attention turns to an anticipated U.S. tariff announcement later this week, uncertainties linger. Analysts speculate on the sufficiency of China's policy stimulus to counter potential tariff impacts. The Hang Seng Index climbed 1.06%, bolstered by tech sector optimism, while regional markets also displayed upward trends.

(With inputs from agencies.)