* Nikkei, U.S. stock futures pause after three-day rally

* BOJ to meet later, expected to hike interest rates to 1%

* RBA follows at 0430 GMT, no change expected

By Gregor Stuart Hunter

SINGAPORE, June 16 (Reuters) - Asian stocks inched up on

Tuesday after rallying on the previous session on news of a

peace deal between Iran and the U.S., as investors turned their

focus to several central bank decisions including an expected

rate hike from the Bank of Japan.

Early trading in the region followed a familiar pattern,

with markets settling into a more measured tone on Gulf

developments as the initial excitement over the preliminary

agreement between Washington and Tehran began to fade.

Oil prices, which settled at a three-month low overnight,

reflected the cautious stance, with Brent crude futures

up 51 cents, or 0.6%, at $83.74 a barrel. Shippers in Asia and

Europe said rebuilding confidence in resuming transit through

the Strait of Hormuz could take weeks.

MSCI's broadest index of Asia-Pacific shares outside Japan

added 0.2%, with Korean shares leading

gains. Japan's Nikkei 225 was down 0.2%, retreating from

a record high as S&P 500 e-mini futures slipped 0.1%.

While U.S. President Donald Trump's announcement of a deal

with Iran drew initial investor relief on Monday, it also puts

Washington on a collision course with Israel.

"While it is an important diplomatic breakthrough that

should remove a key source of market volatility, the durability

of the deal is likely to be tested in the future," analysts from

Westpac wrote in a research note. "Many sticking points,

including the fate of Iran's nuclear programme, were left to be

resolved in subsequent negotiations."

Overnight on Wall Street, stocks and bonds rallied on

optimism over the deal. The S&P 500 jumped 1.7% and the

Nasdaq Composite surged 3.1%, while the Dow Jones

Industrial Average and the STOXX 600 both closed at

record highs.

Beyond geopolitics, traders are awaiting several major

central bank decisions, including the Bank of Japan, which is

set to raise interest rates to a 31-year high on Tuesday.

Deputy Governor Shinichi Uchida will hold a press briefing after

the meeting, which Governor Kazuo Ueda will miss because he is

undergoing medical treatment.

"We do not anticipate any major changes to the Bank's

assessment of current conditions," analysts from Mitsubishi UFJ

wrote in a research note.

"We expect Deputy Governor Uchida's press conference,

including the rationale he presents for the rate-hike decision,

will be based largely on Governor Ueda's June 3 speech," the

note added. "Mr. Uchida is also likely to follow the governor's

remarks when discussing future policy decisions."

The Reserve Bank of Australia will pause its tightening

cycle when it meets later, according to a Reuters poll of

economists.

The U.S. dollar index, which measures the greenback's

strength against a basket of six currencies, held steady at

99.66, firmly within the tight trading channel in which it has

sat all week.

The yield on the U.S. 10-year Treasury bond was up 0.8 basis

point at 4.475%. Gold was up 0.2% at $4,313.87.

In cryptocurrency markets, bitcoin was down 0.3% at

$66,245.97, while ether slumped 1.2% to $1,793.70.