TOKYO, May 1 (Reuters) - Japan's Nikkei share average

fell in the morning session on Wednesday, with traders

maintaining a cautious stance on the first day of the month

ahead of the U.S. Federal Reserve's monetary policy decision.

The Nikkei was down 0.56% at 38,189.54 by the

morning break.

The broader Topix declined 0.64% to 2725.70.

The Federal Reserve Open Market Committee (FOMC) is widely

expected to leave interest rates unchanged at the end of its

two-day meeting on Wednesday, as U.S. inflation proves sticky.

U.S. stocks ended lower overnight as markets weighed

economic data showing rising labor costs and deteriorating

consumer confidence.

While markets have already pared back expectations of a Fed

rate cut this year, investors remain wary of how hawkish a

message Fed Chair Jerome Powell will send at his press

conference.

Large policy rate gap between Japan and the U.S. continues

to put pressure on the yen, raising questions on how excessive

currency weakness will impact the local economy and the Bank of

Japan's rate outlook.

The risk of currency intervention, and suspicion that Tokyo

may already have intervened, was also keeping investors on

alert.

"In that sense, I don't think people are going to be very

keen to buy stocks while the yen is this weak," said Hiroshi

Namioka, chief strategist at T&D Asset Management.

Of the Nikkei's 225 constituents, only 44 advanced versus

181 decliners.

Among individual stocks, earning results and share-specific

news drew out some stark winners and losers.

Shares of chip-related equipment maker Lasertec ( LSRCF )

jumped 16.1% after the company published an estimate-beating

earnings post market hours on Tuesday.

West Japan Railway Co ( WJRYF ) gained 7.7% on Wednesday

following its decision to buy back 4.1% of its own shares.

JGC Holdings Corp ( JGCCF ) was the largest decliner, falling

11.2% on disappointing revenue forecast.