China's rally loses steam as authorities frustrate markets; Hong Kong stocks fell more than 6%

SINGAPORE – The rally in Chinese markets lost steam on Tuesday after a briefing by the country's National Development and Reform Commission gave few details on further stimulus.

The index traded up 5% after the session, after mainland China's CSI 300 skyrocketed more than 10% at the open on Tuesday, returning from the Golden Week holiday.

Hong Kong's Hang Seng index briefly fell more than 10%, before recovering slightly to a smaller loss of 6.4%.

Other Asia-Pacific markets mostly fell on Tuesday, as investors looked to August payrolls and spending data from Japan.

Household spending in Japan fell 1.9% year-on-year in real terms in August, a softer decline than the 2.6% decline in a Reuters poll of economists.

The drop was the fastest pace of decline since January, which saw a 6.3% year-over-year decline. The decline came ahead of the biggest pay increase for unionized Japanese workers in 33 years in spring wage talks.

However, real wages rose in August, with wages rising 2% to an average of 574,334 yen ($3,877.44), according to data from the country's statistics bureau.

Overnight in the US, stocks slipped as rising oil prices and higher Treasury yields weighed on market sentiment.

The Dow Jones Industrial Average fell 0.94%, while the S&P 500 fell 0.96%. The Nasdaq Composite saw the biggest losses, down 1.18%.

The benchmark 10-year Treasury yield rose to 4.02%, the first time the yield topped 4% since August.

Oil prices also rose as tensions in the Middle East continued. US crude oil rose more than 3% to settle above $77 a barrel.

— CNBC's Lisa Kailai Hahn and Jesse Pound contributed to this report.