Nikkei flat before Fed, Fast Retailing climbs

* Trade thin, lacks direction ahead of FOMC, ECB -analyst

* Suzuki slips as forecast falls short of expectations

* Japan Steel Works jumps after lifting forecast

By Aiko Hayashi

TOKYO, Nov 4 (Reuters) - The Nikkei average was flat on Wednesday, with Fast Retailing (9983.T) climbing on a surge in sales at its Uniqlo clothing stores but some exporters losing ground due to caution before a Federal Reserve statement on interest rates and the economy.

Suzuki Motor (7269.T) slipped after its upward forecast revision on Monday fell short of market expectations, while Japan Steel Works (5631.T) surged after the maker of thermal and nuclear power generator parts lifted its full-year operating profit forecast.

"There's a sense of relief in the market after some U.S. economic indicators such as ISM beat expectations during a market holiday in Tokyo," said Yumi Nishimura, deputy general manager at Daiwa Securities SMBC.

"But on the whole, the market is lacking direction as investors wait for results from the FOMC and the ECB meetings."

The factory gauge from the Institute for Supply Management on Monday pointed to a brisk pace of growth in the fourth quarter and hinted at an improvement in the labor market in October. [ID:nN02437173]

In thin trade, the benchmark Nikkei .N225 inched down 6.67 points to 9,796.28, after sliding 2.3 percent on Monday to hit a three-week closing low. Japanese markets were closed on Tuesday for a national holiday.

The broader Topix dipped 0.2 percent to 878.87.

"The nervous mood in the market will likely continue as the jobs situation and most importantly, consumer spending in the United States has not recovered, though economic data and corporate earnings are showing signs of a considerable recovery," said Kenichi Hirano, operating officer at Tachibana Securities.

The S&P 500 and Nasdaq rose slightly on Tuesday as news of a major railroad acquisition helped sentiment, but the Dow edged lower on caution as the Federal Open Market Committee began a two-day meeting that day.

While investors expect the Fed to leave rates close to zero, they are nervous to hear what the officials say about the economic outlook. [.N]

The European Central Bank meets on Thursday and is widely expected to keep euro zone interest rates at a record low of 1 percent. [ECB/POLL]

FAST RETAILING SHINES