Mixed Gains as China Stocks Navigate Manufacturing Optimism and Tariff Concerns

China and Hong Kong markets saw slight gains on Tuesday as positive manufacturing data was offset by tariff worries and a Xiaomi sell-off. Key indices like the Shanghai Composite and Hang Seng rose modestly. Healthcare led gains, amid concerns over impending U.S. tariffs and potential policy stimulus inadequacy.

China and Hong Kong stock markets struggled to maintain momentum on Tuesday, with minor gains noted amidst a day of mixed implications for investors. Data showing a robust rise in Chinese manufacturing spurred early optimism, as the sector hit a four-month high.

Healthcare stocks notably led the charge, advancing by 3%, while defense also saw a 1.9% increase, following China's military exercises near Taiwan. However, new tariff talks and a significant decline in Xiaomi, which lost more than 5%, tempered broader market enthusiasm.

Experts indicate these gains might be fleeting unless China's policy action can counter forthcoming U.S. tariffs, an issue analysts view with skepticism. Economic sentiment remains cautious even as PMI data suggest manufacturing momentum.

(With inputs from agencies.)