Nikkei up 0.4 pct as Fast Retailing gains, Fed eyed

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

* FOMC comment on time frame for rate policy eyed -strategist

* Chip shares fall after Morgan downgrade of U.S. chip sector

By Aiko Hayashi

TOKYO, Nov 4 (Reuters) - The Nikkei average rose 0.4 percent on Wednesday, with Fast Retailing (9983.T: Quote, Profile, Research) climbing on a surge in sales at its Uniqlo clothing stores but chip-related stocks lost ground after Morgan Stanley downgraded the U.S. semiconductor sector to "cautious".

Shionogi & Co (4507.T: Quote, Profile, Research) extended gains after saying it has applied for approval of its experimental influenza treatment, while Japan Steel Works (5631.T: Quote, Profile, Research) surged after the maker of thermal and nuclear power generator parts lifted its full-year operating profit forecast.

But overall trade flip-flopped in a tight range throughout the day as investors remained cautious before a Federal Reserve statement on interest rates and the economy, analysts said.

"The biggest focus regarding the result of the FOMC meeting is the time frame for the U.S. low interest rate policy," said Soichiro Monji, chief strategist at Daiwa SB Investments.

"Eyes are on whether and how the word 'extended' will be used in the statement. Higher rates would be generally negative for stocks."