(Updates prices after BOJ decision)

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

advanced on Tuesday, tracking overnight Wall Street gains,

following signs of a potential de-escalation of tensions in the

Middle East.

The equity market largely shrugged off the Bank of Japan's

decision to slow its pace of government bond purchase reductions

from next April, and keep interest rates steady, as expected.

The Nikkei rose 0.6% to 38,524.52, as of 0346 GMT,

shortly after the central bank's announcement.

The broader Topix added 0.3%.

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

Monday as market sentiment improved with Iran seeking a

ceasefire with Israel.

Meanwhile, the BOJ maintained short-term rates at 0.5% by a

unanimous vote at the two-day policy meeting that ended on

Tuesday.

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

reiterate a commitment to raising rates when he holds a press

conference at 0630 GMT, despite rising uncertainty from U.S.

trade tariffs and global conflicts including in the Middle East.

Under its fiscal 2026 plan starting in April, the BOJ will

reduce monthly bond buying by 200 billion yen ($1.38 billion)

each quarter, reducing the total to around 2 trillion yen by

March 2027.

Japanese growth shares outperformed, with a Topix index of

the securities up 0.5%, compared with a 0.2% rise for

value shares.

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

Disco was the biggest percentage gainer with a 6.5%

surge. Advantest ( ADTTF ) climbed 2.8% and Tokyo Electron ( TOELF )

advanced 3.2%.

Out of the Nikkei's 225 components, 139 rose, 83 fell and

three traded flat.

($1 = 144.6400 yen)