After blockbuster performances in the wake of last month's announcements to kickstart growth, traders were left deflated Tuesday after a news conference that fell short of expectations and revived worries about the outlook.
A rally on Wall Street, helped by a plunge in oil prices and optimism over the US economy, did little to lift sentiment on Chinese trading floors, though most other markets in Asia enjoyed gains.
Investors are now keeping tabs on developments out of Beijing, hoping for more indications about officials' plans, though analysts warn there is unlikely to be the big "bazooka" stimulus akin to the support seen during the global financial crisis.
Shehzad Qazi at China Beige Book said the news conference "underscored that Beijing does not feel the need to do 'whatever it takes'.
"Instead it's opting for targeting stimulus -- including allocating funds for projects previously announced. The irony is markets would've continued rallying had there been no press conference.
"The only upside of (Tuesday's) event was injecting a much needed dose of reality."
Hong Kong had soared more than 20 percent between the first batch of measures being announced and Monday, but it collapsed more than nine percent Tuesday -- its worst day since 2008.
After swinging in the morning, the Hang Seng Index fell more than one percent by the break Wednesday as traders struggled to get back on track.
Shanghai fell more than five percent -- having seen a 10 percent opening rally Tuesday pared to just over four percent by the end of the day.
Still, most other markets in the region rose as investors took their lead from New York, where tech firms led the way on optimism over the world's top economy in the wake of Friday's forecast-topping jobs data.
Tokyo rose, with Seven & i Holdings -- the owner of the 7-Eleven convenience store chain -- piling on 12 percent at one point after a report said Canada's Alimentation Couche-Tard had hiked its takeover offer for the company by almost 20 percent to $47.2 billion. It later eased back to sit almost five percent higher.
Sydney, Singapore, Taipei, Wellington, Bangkok and Mumbai also rose, though Manila and Jakarta dipped.
While the US jobs figures dented expectations for a second successive bumper interest rate cut this month, they did temper worries about a possible recession.
US consumer and producer prices data towards the end of the week should provide further clues on the interest rate outlook, while third-quarter earnings season kicks off on Friday.
Oil prices inched up but made little headway into the losses of almost five percent suffered in the previous session that came on the back of doubts about Chinese demand and after Israel faced international pressure not to strike Iranian crude installations.
Fears about Tel Aviv's response to Iran's missile attack last week had sent the commodity soaring Monday to their highest levels since August.
Healthy US stockpiles and expectations of ample supply both in and out of OPEC also weighed on the black gold.
- Key figures around 0400 GMT -
Shanghai - Composite: DOWN 5.3 percent at 3,304.84 (break)
Hong Kong - Hang Seng Index: DOWN 1.4 percent at 20,635.11 (break)
Tokyo - Nikkei 225: UP 0.7 percent at 39,196.43
West Texas Intermediate: UP 0.3 percent at $73.78 per barrel
Brent North Sea Crude: UP 0.4 percent at $77.47 per barrel
Euro/dollar: DOWN at $1.0969 from $1.0981 on Tuesday
Pound/dollar: DOWN at $1.3090 from $1.3100
Dollar/yen: DOWN at 148.25 yen from 148.29 yen
Euro/pound: UP at 83.80 pence from 83.79 pence
New York - Dow: UP 0.3 percent at 42,080.37 (close)
London - FTSE 100: DOWN 1.4 percent at 8,190.61 (close)
dan/mtp
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