7 August 2006, 11:00  Tokyo shares end sharply lower on selloff ahead of FOMC meeting

Share prices closed sharply weaker, finishing at their weakest level in nearly two weeks, as investors cut holdings, wary of the US Federal Reserve's intentions at tomorrow's policy meeting, dealers said. Data showing slower-than-expected US jobs growth last month has not been enough to end speculation that the Fed may again increase its key target rate at the conclusion of the policy meeting, they said. In addition, upcoming local events this week, including June quarter GDP data and a Bank of Japan policy meeting along with a press conference from governor Toshihiko Fukui, kept many players cautious today. The Nikkei 225 Stock Average ended down 345.12 points or 2.2 pct at 15,154.06, its session low. This was its weakest closing level since July 26, when it settled at 14,884.07. The TOPIX index of all first-section issues shed 31.58 points or 2.0 pct to 1,540.12, also its low for the day. Decliners beat advancers 1,534 to 125, with 37 issues unchanged. Volume was 1.37 bln shares, up from 1.35 bln Friday.

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