The Shanghai Composite Index closed down 6.1 percent at 3,749.12 points in its biggest daily decline since July 27, after recovering for three days. The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 6.2 percent at 3,825.41.

The Dow Jones industrial average fell 33.84 points, or 0.19 percent, to 17,511.34, the S&P 500 dropped 5.52 points, or 0.26 percent, to 2,096.92 and the Nasdaq Composite declined 32.35 points, or 0.64 percent, to 5,059.35.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 1.2 percent after hitting its lowest since July 2013. Japan's Nikkei dipped 0.3 percent.

MSCI's all-country world stock index eased 0.31 percent.

China's central bank on Tuesday set the yuan's midpoint near Monday's closing price at 6.3966 per U.S. dollar. In the spot market, the yuan closed flat at 6.3938.

Investors will look to U.S. inflation data and minutes of last month's Federal Reserve monetary policy meeting on Wednesday, as they seek for further clues as to when the Fed will begin raising interest rates.