Asian stocks kicked off the year mostly with gains on Tuesday as traders drifted back to work after the New Year holiday break.

Hong Kong led Tuesday's rally. The Hang Seng Index jumped two percent to its highest level since late 2007. The Shanghai Composite Index ended 1.2 percent higher, boosted by data showing manufacturing activity in China continued to expand in December. Singapore's Strait Times rose 0.8 percent after figures showing the city-state's economy beat estimates in the final three months of last year. South Korea's KOSPI added 0.5 percent with some optimism around the peninsula nuclear crisis. Australia's All Ordinaries slipped 0.36 percent. Tokyo and Wellington are closed for holidays.