Tokyo, Reuters: Volatile global markets showed signs of a respite from the recent blood-letting on Tuesday, as bargain hunters helped Asian stocks off three-year lows hit on fears that China's economy was risking a hard landing, with Chinese shares losing another 5 percent.

The MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS jumped 1.7 percent after an initial dip to three-year lows while Japan's Nikkei .N225 index also erased most of its early losses after an initial drop of 4.3 percent.

"There appears to be buyback as many markets look oversold after panicky selling in the last few days. Even the shares that had little business ties with China were sold," said Yukino Yamada, senior strategist at Daiwa Securities.

U.S. stock futures ESc1 also gained 2.0 percent in Asia, paring a part of its 5-percent fall the previous day. But mainland Chinese shares bucked the trend, with Shanghai Composite Index .SSEC falling another five percent even after 15 percent fall in the last three days, including 8.5 percent drop on Monday.

"Global investors are cannibalizing each other. Calling it a market disaster is not an overstatement," said Zhou Lin, an analyst at Huatai Securities. "The mood of panic is dominating the market ... And I don't see any signs of meaningful government intervention."

Underlining concerns about China, Japanese Finance Minister Taro Aso said on Tuesday he hoped China would take action to stabilize its economy and that Tokyo had no plan for now to unveil its own new economic stimulus package.

MSCI's all country world index .MIWD0000PUS is up 0.2 percent in Asia after having fallen 3.8 percent on Monday to a 10 1/2-month low, its biggest fall in almost four years.

Global share markets have been hit by worries that the Chinese economy, the most important engine for the world economy, was growing at a much slower pace than Beijing's 7 percent target for 2015.

Investors are also unnerved by uncertainty over U.S. monetary policy. The Federal Reserve has said it plans to raise interest rates this year for the first time in almost a decade. The heavy fall in share prices worldwide over the past week has sharply reduced expectations of a U.S. rate hike in September, but the outlook is far from clear.

Atlanta Fed President Dennis Lockhart, whose comments earlier this month sparked expectations of a hike in September, said on Monday that the Federal Reserve will likely begin raising rates "sometime this year."

On Wall Street, the S&P 500 Index .SPX fell 3.9 percent to a 10-month low on Monday. The CBOE volatility index .VIX, a key measure of U.S. equity volatility, shot up to more than 50 percent at one point for the first time since the 2008 global financial crisis.

Because some investors often fund their investment in risk assets by borrowing low-yielding euro and yen, the sell-off in shares helped send both currencies to seven-month highs.

The euro rose as high as $1.1715 EUR= while the yen strengthened to 116.15 to the dollar JPY=.

But both currencies stepped back in Asia. The euro slipped 0.7 percent to $1.1531 while the yen retreated to 120.02 to the dollar. Oil prices also stabilized in Asia after having plunged more than 6 percent on Monday to 6 1/2-year lows.

U.S. crude futures CLc1 traded at $38.73 per barrel, gaining a dollar from Monday's low of $37.75. Brent crude futures last stood at $43.20 after having fallen to $42.23 on Monday.

Brent still stood not far from $36.20, its low hit in the aftermath of the global financial crisis, having fallen more than 66 percent from last year's peak.

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