The blockbuster 4.5 percent expansion, along with above-forecast retail sales, revived optimism for an economic recovery in the country after its worst performance in decades last year.
The figures are the first snapshot since 2019 of a Chinese economy unencumbered by public health restrictions, which included months-long city-wide lockdowns that brought large parts of the country to a standstill.
However, while the readings bode well for the world's second-biggest economy, inflation data last week showed consumer activity remained sluggish, suggesting the recovery could still take time.
Investors also continue to fret over Federal Reserve plans to hike interest rates as officials try to rein in US inflation, with top policymakers seeming to be split over how many more increases are needed.
Wall Street's three main indexes ended slightly higher in muted trade as investors there awaited the release of fresh earnings following broadly positive results from banking giants including JPMorgan and Citigroup.
A surprise jump in a closely watched index tracking New York state manufacturing added to the buying sentiment, while the VIX Index of market volatility dipped below 17 to its lowest since the start of last year.
"The subtle yet positive data beat goes on after last week's highlight reel was almost uniformly hopeful, including progress on inflation, better growth than expected, the possibility of fewer rate hikes, and some constructive big bank earnings," said SPI Asset Management's Stephen Innes.
But after a healthy run-up Monday, Asia struggled, though the China data provided a little boost.
Hong Kong, Shanghai, Sydney, Seoul, Singapore, Wellington, Taipei and Manila all dipped though Tokyo and Jakarta edged up.
Focus now turns to the release of fresh US earnings this week from big-ticket names including Bank of America, Morgan Stanley, Johnson & Johnson, Netflix, Tesla, Ericsson and Nokia.
"Earnings season is having its best start since 2012 as around 90 percent of S&P 500 companies are delivering earnings beats," said OANDA's Edward Moya.
"Pessimism was so high that earnings have been revised so low that everyone is beating."
However, traders will still be nervously watching the reports from the financial sector following last month's banking turmoil that saw three regional US lenders go under and Credit Suisse taken over.
"The focus on the hundreds of regional banks reporting in coming days will be firmly on the extent of deposit outflows relative to street expectations," said Ray Attrill at National Australia Bank.
- Key figures around 0245 GMT -
Tokyo - Nikkei 225: UP 0.6 percent at 28,675.32 (break)
Hong Kong - Hang Seng Index: DOWN 0.7 percent at 20,643.29
Shanghai - Composite: DOWN 0.1 percent at 3,382.32
Euro/dollar: UP at $1.0934 from $1.0930 on Monday
Pound/dollar: UP at $1.2384 from $1.2376
Dollar/yen: UP at 134.54 yen from 134.46 yen
Euro/pound: UP at 88.30 pence from 88.29 pence
West Texas Intermediate: UP 2.0 percent at $81.00 per barrel
Brent North Sea crude: UP 0.2 percent at $84.92 per barrel
New York - Dow: UP 0.3 percent at 33,987.18 (close)
London - FTSE 100: UP 0.1 percent at 7,879.51 (close)
dan/qan
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