Chinese stocks headed for the biggest three-week loss in 22 years as government efforts to quell the rout failed. Oil slipped and New Zealand’s dollar headed for a record run of weekly losses.
The Shanghai Composite Index tumbled as much as 5 percent by 10:56 a.m. in Tokyo, taking losses since June 12 to 28 percent. Australian stocks slid amid a slump in iron-ore prices. Yields on 10-year Japanese and Australian bonds fell at least one basis point after Treasuries rallied on a weaker-than-estimated jobs report. U.S. markets are shut July 4. Oil was set for its worst week since March after a jump in the U.S. rig count. The kiwi headed for an 11th straight weekly drop.
China pledged to “strictly” punish stock manipulation as markets continued to sell off even after margin-trading rules were eased, interest rates were cut and pension funds were given permission to buy stocks. Investors are waiting on the result of Greece’s referendum on austerity. U.S. payrolls data indicated that while more jobs are being created, wages have stagnated.