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RPT - Tokyo shares outlook - Weaker on caution ahead of US jobs data.

Europe Intelligence Wire

| September 01, 2006 | COPYRIGHT 2006 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From AFX UK (Focus))

- (Repeating to clarify reference to weaker yen in 3rd para)

TOKYO (XFN-ASIA) - Share prices are expected to open lower following modest losses on Wall Street overnight and as market players exercise caution ahead of the closely-watched US employment report for August due later in the global session, dealers said.

The latest jobs data are expected to provide investors fresh clues on whether the US economy -- Japan's major trading partner -- has slowed enough to ward off further interest rate hikes -- or whether the Federal Reserve's 17 straight increases since 2004 might have tipped the economy too far.

But a weaker yen may continue to inspire buying of shares of exporters, and help the benchmark Nikkei index stay above the critical 16,000 level.

Overnight, ...

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