TOKYO, April 30 (Reuters) - Japan's Nikkei share average

traded higher on Tuesday, tracking an overnight strong finish on

Wall Street, while investors await the outcome of the U.S.

Federal Reserve's two-day meeting to determine the fate of the

yen.

The Nikkei rose 1.38% to 38,459.01 by the midday

break, while the broader Topix advanced 2.01% to

2,740.54.

"The U.S. equities were strong since the end of the last

week, while the U.S. yields traded lower. That underpinned

Japanese stocks today," said Shuji Hosoi, senior strategist,

Daiwa Securities.

Markets in Japan were closed on Monday.

Shares of chip-making equipment maker Tokyo Electron ( TOELF )

rose 2.69%. Silicon-wafer maker Shin-Etsu Chemical ( SHECF )

surged 4.4% and technology investor SoftBank Group ( SFTBF )

gained 1.8%.

The markets' focus is now on the U.S. Fed's policy meeting

this week after Japan's currency surged as much as 5

yen against the dollar from a fresh 34-year low of 160.245 on

Monday in what traders cited as intervention.

"Whether or not what the market thought was an intervention

yesterday was a success is not known. Because the yen could

spike 160 to the dollar again if the Fed's message is hawkish

after its meeting," Daiwa's Hosoi said.

Japanese authorities have not confirmed that they had

stepped into the currency market in support of the yen.

Among individual stocks, shares of KFC Holdings

surged 6.49% after local media reported U.S. buyout fund Carlyle

is close to acquiring the operator of Kentucky Fried Chicken

outlets.

Sumitomo Corp ( SSUMF ) jumped 7% after a report said U.S.

fund Elliott built a "large stake" in the trading firm.

Of the 225 components on the Nikkei, 188 stocks rose and 27

fell.