Chinese stocks ended slightly higher on Tuesday after its blue-chip index hit a 7-month low in the previous session, as investors assessed the latest trade data and escalating U.S.-China trade tensions.

Artificial intelligence stocks rose 1.9% to lead the A-share gains.

Hong Kong shares closed up thanks to the jump in Alibaba's Hong Kong shares as it was added to the Stock Connect Scheme, allowing mainland investors to buy the stock.

China's exports grew at their fastest pace since March 2023 in August, while imports missed forecasts amid weak domestic demand.

Analysts warn mounting trade barriers are emerging as another major obstacle despite strong August exports. "The question is how long exports can stay strong given the weakening U.S. economy and the rising trade tension," said Zhang Zhiwei, chief economist at Pinpoint Asset Management.

Shares of biotech firm WuXi AppTec dropped more than 10% in Hong Kong and 5% in mainland, WuXi Biologics fell 4% after the U.S. House of Representatives on Monday passed a bill that aims to restrict business with several Chinese biotech companies on national security grounds.

At the close, the Shanghai Composite index was up 0.28% at 2,744.19. ** The blue-chip CSI300 index was up 0.09%, with its financial sector sub-index higher by 0.25%, the consumer staples sector up 0.03%, the real estate index down 1.53% and the healthcare sub-index down 0.96%. ** The smaller Shenzhen index ended up 0.27% and the start-up board ChiNext Composite index was higher by 0.061%.

** In Hong Kong, the Hang Seng index was up 37.13 points or 0.22% at 17,234.09. The Hang Seng China Enterprises index rose 0.39% to 6,026.34. ** The sub-index of the Hang Seng tracking energy shares rose 0.1%, while the IT sector dipped 0.69%, the financial sector ended 0.08% higher and the property sector dipped 1.63%.

** Alibaba rose 4.2% in Hong Kong on its first day joining the Mainland-Hong Kong Stock Connect. ** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.09%, while Japan's Nikkei index closed down 0.16%.

(Reporting by Summer Zhen; Editing by Eileen Soreng)