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

fell on Tuesday, as investors sold stocks after sharp gains in

the previous session, while caution prevailed ahead of key

central bank meetings in Japan and the United States.

The Nikkei fell 0.96% to 38,10124 by the midday

break. The index rose 2% in the previous session, rebounding

from a three-month low hit last week.

The broader Topix fell 0.87% to 2,735.7.

"The Nikkei rose too much yesterday and the market did not

find any reason to justify further gains today," said Jun

Morita, general manager of the research department at Chibagin

Asset Management.

"After all, the index came back to where it was before it

started a rally to hit a record high earlier this month."

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

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

September.

The Bank of Japan is expected to announce quantitative

tightening plans at this week's meeting and the market is

divided about a rate hike.

Uniqlo-brand owner Fast Retailing ( FRCOF ) fell 2.19% to

drag the Nikkei the most. Technology investor SoftBank Group

lost 2.06% and chip-equipment maker Tokyo Electron ( TOELF )

slipped 1.64%.

Fanuc ( FANUF ) jumped 3.26% to become the biggest support

for the Nikkei after the robot maker raised its annual operating

profit forecast by 0.8%.

Pasona Group ( PGUPF ) surged 13.4% after a regulatory filing

showed activist investor Oasis Management owns 5.02% stake in

the staffing and outsourcing company.

Of the 225 components of the Nikkei, 46 stocks rose and 175

fell, with three trading flat.

(Reporting by Junko Fujita; Editing by Subhranshu Sahu)