* Nikkei pressured as yen rises against dollar

* Machinery orders "positive surprise" but little impact

By Elaine Lies

TOKYO, Nov 11 (Reuters) - Japan's Nikkei stock average was flat on Wednesday as the yen climbed, offsetting a surprisingly large jump in domestic machinery orders for September and a forecast for a rise in the fourth quarter.

Tech shares such as Advantest Corp (6857.T: Quote, Profile, Research) slipped after rising the previous day, while nonferrous metals makers such as Dowa Holdings (5714.T: Quote, Profile, Research) came under pressure amid concerns over long-term demand. But Japan Airlines Corp (9205.T: Quote, Profile, Research) rose 4.8 percent after sources said the state-owned Development Bank of Japan will offer a 100 billion yen ($1.1 billion) line of credit to JAL to keep the airline from running out of cash. [ID:nBNG509104]

The dollar lost 0.4 percent to 89.37 yen and analysts said the stronger yen was providing some immediate pressure, although they noted that the bigger problem was one of demand.

"Japanese investors basically lack confidence. There's worry about financing issues, and the market's lacking catalysts now that the earnings season is mostly over," said Koichi Ogawa, chief fund manager at Daiwa SB Investment.

"Longer-term, there's the whole issue of the Japanese budget deficit."

Core machinery orders, a highly volatile series regarded as an indicator of capital spending, surged 10.5 percent in September and manufacturers forecast a rise of 1.0 percent in October-December, the first quarterly increase in seven quarters. [JPMORD=ECI]