The Chinese central bank’s liquidity boosting tool sparks a 2.5 per cent surge in Hong Kong’s Hang Seng Index.

Investors in Hong Kong have bet a record amount on exchange-traded funds that profit when stocks decline, showing how quickly sentiment is shifting following a breakneck rally.

A key stock market index in Hong Kong saw the biggest single-day drop since the financial crisis on Tuesday. The Hang Seng index fell by -2172.99 (-9.41 percent) on Tuesday. The drop followed an announcement on Tuesday by China's economic planning agency that outlined details of measures aimed at boosting the economy but refrained from major spending initiatives.

U.S. stocks are steadying themselves on Tuesday as falling oil prices release some of the pressure that’s built up on the market. The S&P 500 was 0.8% higher in afternoon trading and clawing back most of its loss from the day before.

Hong Kong's share benchmark has fallen more than 9% and other Chinese markets gave up much of their early gains as traders dumped shares following recent rallies. The Hang Seng

Wall Street pushed higher early Tuesday even though Hong Kong's Hang Seng market plunged more than 9% after Beijing refrained from major spending initiatives as China's economy slows. Futures for the S&P 500 rose 0.