TOKYO, June 17 (Reuters) - Japan's Nikkei share average

ticked higher on Tuesday, tracking overnight gains on Wall

Street, as investors awaited a policy decision from the Bank of

Japan that could include a slower pace of bond purchase

reductions.

The Nikkei rose 0.4% to 38,482.43 as of 0053 GMT,

while the broader Topix added 0.1%.

All three major U.S. stock indexes advanced strongly on

Monday as market sentiment improved with Iran seeking a

ceasefire with Israel.

Japan's central bank is widely expected to keep interest

rates steady on Tuesday, but it may as much as halve the current

pace of monthly Japanese government bond purchases to 200

billion yen from the start of the next fiscal year in April.

At the same time, BOJ Governor Kazuo Ueda is likely to

reiterate a commitment to raising rates, despite the increased

uncertainty from U.S. trade tariffs and global conflicts

including in the Middle East.

The policy announcement is likely to come between 0230-0400

GMT, followed by Ueda's press conference at 0630 GMT.

Japanese growth shares outperformed, with a Topix index of

the securities up 0.2% compared with a 0.1% decline for

value shares.

Chip-related stocks were among the Nikkei's top performers.

Disco was the biggest percentage gainer with a 6.4%

surge. Advantest ( ADTTF ) climbed 3.8% and Tokyo Electron ( TOELF )

advanced 3.3%.

Out of the Nikkei's 225 components, 101 rose, 119 fell and

five traded flat.