Chinese stocks started 2018 on a strong note, with both key indices rising more than 1 percent on the first trading day.

The benchmark Shanghai Composite Index went up 1.24 percent to close at 3,348.33, and the Shenzhen Component Index closed 1.25 percent higher at 11,178.05.

Combined turnover on the two bourses stood at around 445.5 billion yuan (about 68.55 billion U.S. dollars).

The ChiNext Index, which tracks China's NASDAQ-style enterprises, gained 0.97 percent to close at 1,769.67.

Market sentiment was boosted by data showing China's manufacturing sector expanded in December.

The country's manufacturing purchasing managers' index came in at 51.6 for December, staying in positive territory for 17 months in a row.

Strong petrochemical and financial heavyweights lifted Tuesday's market, with Sinopec, the largest oil refiner in China, up 3.92 percent to 6.37 yuan. China Merchants Bank gained 2.07 percent to 29.62 yuan.

Cement producers were also among the top gainers of the day, as China's central leadership stressed high-quality development of rural roads in pursuit of the rural vitalization strategy.

Gansu Shangfeng Cement and Henan Tongli Cement both rose by the daily limit of 10 percent to 10.69 yuan and 17.03 yuan, respectively.