(Updates at 0600 GMT)

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

reversed course to end higher on Tuesday, as investors bought

back stocks on dips, but gains were limited ahead of key central

bank meetings in Japan and the United States.

The Nikkei inched up 0.15% to close at 38,525.95,

after falling as much as 1% earlier in the session.

The index rose 2% on Monday, rebounding from a

three-month low hit last week.

The broader Topix ended 0.19% lower at 2,754.45.

"The Nikkei should not have fallen that much on a day like

today when the market was just waiting for the central bank

decisions," said Naoki Fujiwara, senior general manager at

Shinkin Asset Management.

The Bank of Japan is expected to announce quantitative

tightening plans after the policy meeting on Wednesday while the

market is divided about a rate hike.

Markets are pricing almost no chance of a U.S. rate cut this

week but have fully priced a 25 basis-point reduction in

September.

"The market sentiment will be lifted if the BOJ does not

raise its policy rate tomorrow, and the yen will weaken, which

is also good for stocks," said Fujiwara.

Chip-making equipment manufacturer Tokyo Electron ( TOELF )

changed course to rise 0.84%, giving the biggest boost to the

Nikkei. Staffing agency Recruit Holdings ( RCRRF ) rose 2.86%.

Fanuc ( FANUF ) rose 2.93% after the robot maker raised

its annual operating profit forecast by 0.8%.

Pasona Group ( PGUPF ) surged 12.17% after a regulatory

filing showed activist investor Oasis Management owns a 5.02%

stake in the staffing and outsourcing company.

Uniqlo-brand owner Fast Retailing ( FRCOF ) fell 0.53% to

weigh on the Nikkei the most.

Of the 225 components of the Nikkei, 100 stocks rose and 123

fell, with two trading flat.