I am working on a mobile website at the moment and I refreshed the page, Chrome quit unexpectedly, and since then all touch screen emulation is absent and/or failing.
<Stop the "Tablet PC Input Service" and restart chrome. If chrome thinks you have a touch screen, it won't let you emulate one.
I stumbled across the answer here: https://github.com/Modernizr/Modernizr/issues/880
Sorry about this. We overhauled the touch emulation in Chrome 36 to be much more accurate (sharing code with what really happens in Chrome Android): https://plus.sandbox.google.com/+RickByers/posts/CBCmhVttj5C. In the process we ended up disabling touch emulation when real touch support was present (at the time we thought this was no big deal because if you've got a real touchscreen why would you want to fake one with mouse?). But some Windows PCs report that they have a touchscreen when in fact they don't really (Eg. Visual Studio installs a touch screen emulator I believe).
We're fixing this at http://crbug.com/395531 - hopefully there will be a Chrome Canary build soon that re-enables touch emulation in these cases.
In the meantime you can mostly work around the issue by disabling Chrome's support for built-in touchscreens at chrome://flags/#touch-events. Make sure you set this back to 'Enabled' after Chrome is updated to fix the issue. With this disabled, some minor aspects of touch emulation (eg. DOM0 ontouchstart= handlers) will not work properly.