Does jQuery mouseup event work on touch devices?

No, it does not work. But here is a touchstart and touchend event.

$(document).bind( "mouseup touchend", function(e){
  var container = $('#container');
  if (!container.is(e.target) // if the target of the click isn't the container...
    && container.has(e.target).length === 0) // ... nor a descendant of the container
  {
    $('.subcontainer').hide();
  }
});