(Updates prices after BOJ decision, adding yen and bonds;

changes media packaging information to JAPAN-MARKETS from

JAPAN-STOCKS)

By Kevin Buckland

TOKYO, June 16 (Reuters) - Japan's Nikkei share average rose

to a record high on Tuesday after theBank of Japan raised

interest rates, as had been widely expected, without signaling

urgency for further tightening in monetary policy.

The yen maintained a slightly stronger tone against the

dollar and Japanese government bonds slipped after the decision.

The Nikkei gained 0.8% to 69,871.13 as of 0340 GMT,

10 minutes after reopening from the midday recess, touching

69,916.34 for the first time ever.

The broader Topix flipped from morning losses to

edge up 0.2% at 4,007.36.

The BOJ's decision came during the trading break for stocks

and bonds and had little initial effect on the yen, which

remained around 0.1% firmer at 160.215 per dollar.

However, that was still on the weaker side of the 160-per-dollar

level considered a line in the sand for intervention by Japanese

officials.

"The BOJ delivered what markets expected," said Charu

Chanana, chief investment strategist at Saxo. "But the reaction

shows this was not hawkish enough to force a major yen

repricing."

The central bank "is still moving in a very gradual way and

continues to say financial conditions will remain

accommodative," she added. "This is mildly supportive for

Japanese equities because the BOJ is tightening, but not in a

way that threatens liquidity or earnings."

Benchmark 10-year JGB futures lost 0.28 yen to

127.98 yen. The yield on the 10-year cash bond

was 0.5 basis point higher at 2.625%. Yields rise when bond

prices fall.

Of the Nikkei's 225 components, 83 rose versus 142 that

fell, with some heavily weighted AI stocks having an outsized

impact in buoying the market.

Chip-testing machinery makers outperformed, with Advantest ( ADTTF )

gaining 5.1%, as did data centre plays, with Fujikura ( FKURF )

and Furukawa Electric ( FUWAF ) up 9.9% and 7.5%,

respectively.