Hong Kong stocks advanced on the year's first trading day on Tuesday, with optimism stemming from China's solid manufacturing surveys offsetting the negative impact of a strong US dollar.

The Hang Seng index rose for a fourth straight trading session, up 0.7 percent to 22,150.40 points. The China Enterprises Index gained 0.7 percent, to 9,459.55 points.

Investor confidence was lifted after a private business survey showing China's factory activity picked up more than expected in December as demand accelerated.

But gains in the city were capped by concern over a rising US currency, which makes emerging markets less attractive.

The dollar index, a measure of the greenback's value against six major currencies, resumed its climb on Tuesday after a three-week winning streak was snapped last week.

Most sectors in Hong Kong rose, with property stocks leading the gains, up 2 percent at the close.