It comes after China’s central bank cut its benchmark interest rates and the amount of cash banks must keep on hand, the latest stimulus aimed at boosting the world’s second-largest economy as it battles a collapse in share prices. Treasurys slipped, as the fierce demand for haven assets faded.

The Shanghai Composite Index closed Tuesday down 244.94 points to 2,964.97 amid sharp declines that have rattled investors overseas and triggered a global stock sell-off.

The heavy fall in share prices worldwide over the past week has sharply reduced expectations of a U.S. rate hike in September, but the outlook is far from clear. Japan’s Nikkei 225 Index fell 2 percent, following Monday’s 4.61-percent loss. The Shanghai stock index slumped 7.6 percent, on top of Monday’s 8.5 percent loss.

Wall Street had a stomach-churning day Monday, when the Dow plunged more than 1,000 points at one point before finishing down 588.40 points, or 3.6 percent, at 15,871.35.

At Monday’s close, the Shanghai index was down 38 per cent from its June 12 peak and just under 1 per cent from its closing on December 31.

However, other Asian markets are showing signs of decoupling from the plunge after having also opened lower. The S&P 500 officially entered correction territory on fears over China’s economy and its central bank’s ability to stimulate growth.

It may be safe to wade back into stocks Tuesday. Hong Kong’s Hang Seng index rose 0.7 percent, while Sydney’s S&P ASX 200 gained 2.7 percent.

Chinese stocks have dropped again following a dramatic day that saw billions wiped off markets around Europe and the world.

Following the announcement, the pan-European STOXX 600 leaped more than 4 percent, while France’s CAC and Germany’s DAX rallied 4.7 percent and 4.8 percent, respectively.

But some economists say global investors are overreacting to China’s economic risks.

Investors stampeded out of shares after a grim “Black Monday” sparked mayhem in global financial markets but failed to prompt fresh rescue measures from Beijing.

“No one enjoys watching markets implode like this, but there’s not much you can do about it, that’s the problem”, James Lee, managing director and head of securities at First NZ Capital Ltd., told Bloomberg News.

Brent crude, a benchmark for worldwide oils used by many US refineries, fell US$2.50 to US$42.96 a barrel.