Dow futures were down 210 points, and S&P 500 futures were lower by 8.5 points as of 3:38 p.m. HK/SIN. That was compared to steeper declines seen earlier in the day when the implied open for the Dow, based on the futures, was a decline of more than 1,200 points.
The sell off in U.S. stock markets on Monday was a continuation of Friday's weakness as investors rushed for the exits in the wake of rising interest rates.
The Dow Jones industrial average tumbled 1,175.21 points, or 4.6 percent, to close at 24,345.75, breaking below the 25,000 level. The 30-stock index briefly declined more than 1,500 points on Monday and traveled more than 5,100 points during the session.
"There was no specific catalyst outside of stops being triggered at 25,000 and when that happened, the Dow briefly plunged below 24,000, but concerns about the negative impact of rising yields have been the primary driver of the sell-off that began on Friday," Kathy Lien, managing director of FX strategy at BK Asset Management, said in a note.
Correspondingly, U.S. government bond prices rose overnight on safe-haven demand. The yield on the benchmark 10-year U.S. Treasury note last stood at 2.7489 percent after rising as high as 2.88 percent on Monday.
Meanwhile, on the economic front, Australia's central bank on Tuesday kept interest rates unchanged at 1.5 percent. In a statement, the Reserve Bank of Australia also said it expected a gradual pick-up in inflation in the economy.
In currencies, the dollar index, which tracks the U.S. currency against a basket of rivals, was a touch softer at 89.546. Against the yen, the greenback was mostly steady at 109.05, after falling as low as 108.43 earlier in the session.
The Australian dollar was softer at $0.7861.
On the energy front, oil prices extended losses after declining in the last session on the firmer dollar. U.S. West Texas Intermediate crude fell 0.83 percent to trade at $63.62 per barrel and Brent crude futures lost 0.84 percent to trade at $67.05.
— CNBC's Fred Imbert contributed to this report.