Emerging stocks languished near a two-year low on Tuesday after Chinese shares took another beating.
Currencies, mired around multi-year lows, were pulled in different directions by the rising dollar and falling oil prices.
MSCI's emerging market stock index was flat after Chinese shares closed down 1.7 per cent with Beijing scrambling again to prop up markets whose wild fluctuations have heightened fears over China's financial stability.
After a plunge of more than 8 per cent in major indexes on Monday, Chinese regulators said they were prepared to buy shares, while the central bank injected cash into money markets and hinted at further monetary easing.
"It shows the limitations to what the authorities can achieve and raises concern about how they will manage the other challenges in the economy," UBS strategist Manik Narain said.