HONG KONG - Asian markets mostly fell at the end of another volatile session Tuesday, a day after a global rout that saw trading suspended in Chinese markets and US and European equities tank.

In echoes of the summer's turbulence that saw trillions wiped off valuations, most bourses in the region tumbled in the first few minutes of trade before bouncing in and out of positive territory throughout the day. The selling on Monday was fuelled by more downbeat data on Chinese factory activity, the latest evidence showing the world's number two economy struggling with its lowest annual growth rates in 25 years.

The data -- combined with the expiration this Friday of China's measures brought in to curb last year's share slump -- sent Shanghai stocks crashing almost seven percent.

Regulators halted trading in China before the scheduled close on Monday, the first day a new circuit breaker mechanism was in place.

"The main reason for yesterday's fall was concern that China's economy won't steadily pick up. The circuit breaker was more of an accelerant for the fall," Northeast Securities analyst Shen Zhengyang told AFP. On Tuesday the market watchdog, the China Securities Regulatory Commission, sought to calm the panic by defending the measure.

"The circuit breaker has a big impact in stabilising the market and its main function is to provide a 'cooling off period' for the market to avoid or reduce rushed decisions made during wide swings," it said in a statement. Shanghai fell a further three percent at the open Tuesday before swinging from red to green and finally ending 0.3 percent lower.

The losses came despite the central People's Bank of China injecting billions of dollars into financial markets to boost liquidity.

Hong Kong finished 0.7 percent lower, having also enjoyed healthy buying spells, while Tokyo was down 0.4 percent by the close on the back of a strong yen.

Monday's disappointing manufacturing figures were followed later in the day by data suggesting US factory activity had also contracted last month.

"Economic indicators in both China and the US are weak. As they're the world's two biggest economies and the impact is huge, each new data point is keeping stock markets in suspense," Toshihiko Matsuno, chief strategist at SMBC Friend Securities, told Bloomberg News.

Shane Oliver, head of investment strategy in Sydney at AMP Capital Investors, said he expected China's central bank further to ease monetary policy to add to the six interest rate cuts between November 2014 and November 2015.

"We've been reminded that volatility in financial markets remains high and that the global economy still needs monetary policy support," he added.

The sharp declines in Asia Monday were followed by Europe and the United States, with Frankfurt the worst-hit -- diving 4.3 percent. London and Paris also tumbled and later in the day all three main indexes on Wall Street were hammered.

On oil markets both main contracts gave up strong early gains. They had both surged in Asian trade Monday on tensions fuelled by the row between Iran and Saudi Arabia, but later retreated as fears over a global glut and weak demand returned.

US benchmark West Texas Intermediate was up 0.1 percent and Brent dipped 0.2 percent. In early European trade London rallied 1.1 percent, Paris also gained 1.1 percent and Frankfurt rose 0.9 percent.