(Updates at 0600 GMT)

TOKYO, June 18 (Reuters) - Japan's Nikkei share average

rose on Tuesday as investors bought stocks after sharp losses in

the previous session.

The Nikkei rose 1% at 38,482.11. The index fell 1.8%

on Monday, slipping below the psychologically key 38,000 level

for the first time this month.

The broader Topix ended 0.58% higher at 2,715.76.

"The Nikkei fell more than it should have in the

previous session, so investors bought back stocks," said Seiichi

Suzuki, chief equity market analyst at Tokai Tokyo Intelligence

Laboratory.

"But the market does see any good news to lift the index

further or bad news to push it lower at the moment."

Chip-making equipment maker Tokyo Electron ( TOELF ) rose

2.7% to provide the biggest boost to the Nikkei.

TDK jumped 6.32% after the electronic parts maker

said it successfully developed materials for all-solid-state

batteries with 100 times the energy density.

Uncertainties about the Bank of Japan's policy path weighed

on investor sentiment, limiting the Nikkei's advance,

strategists said.

At its policy meeting on Friday, the BOJ said it would start

trimming its bond purchases and also announce a detailed plan in

July on reducing its nearly $5 trillion balance sheet.

"How much the BOJ will reduce the bond buying amounts will

remain unclear until the next policy meeting and the market does

not like to have uncertainties," Suzuki said.

The BOJ maintained its short-term policy rate target in a

range of 0-0.1%, as expected.

"I do not think the BOJ can raise rates as early as next

month, as macro data won't justify the rate hike," said Naoki

Fujiwara, senior general manager at Shinkin Asset Management.

Of the 225 Nikkei components, 165 stocks rose and 59 fell,

with one flat.

The pharmaceuticals sector lost 1.14% to become

the worst performer among the Tokyo Stock Exchange's 33 industry

sub-indexes.

(Reporting by Junko Fujita; Editing by Rashmi Aich and Mrigank

Dhaniwala)