TOKYO, June 14 (Reuters) - Japan's Nikkei share average

drifted without clear direction on Friday as traders waited for

the outcome of a closely watched Bank of Japan policy meeting.

The Nikkei was little changed at 38,702.87 as of

0200 GMT, after starting the day lower and then briefly turning

positive. The broader Topix added 0.29% after recovering

from initial losses.

Investors were anxious to find out the fate of the central

bank's massive 6 trillion yen ($38.14 billion) monthly bond

buying programme, following reports from Reuters and other media

that the BOJ could decide to trim purchases by about 1 trillion

yen.

They will also be on the lookout for hints for a July

interest rate increase, following the first hike since 2007 in

March.

The BOJ decision is expected around 0300 GMT, but the time

is not set. Governor Kazuo Ueda is scheduled to give a press

conference at 0630 GMT.

"Today in the morning especially, supply and demand factors

are not really driving trading," but instead "traders are likely

to be adjusting positions into the BOJ announcement," said Maki

Sawada, an equities strategist at Nomura Securities.

"After we get the BOJ decision, the Nikkei is likely to

react based on reactions in bond yields or foreign-exchange

rates," for example, it could fall if yields jump, she said.

Value shares outperformed, with the Topix's value share

sub-index up 0.5% compared with a 0.08% increase in

growth stocks.

Shipping was by far the best performer among the

Tokyo Stock Exchange's 33 industry groups, rising 3.63%.

Transport equipment was at the bottom, falling 0.9%.

Some chip- and artificial intelligence-related shares

outperformed, following a rally for U.S. peers overnight.

AI-focused startup investor SoftBank Group advanced

2.74% to be the biggest points gainer on the Nikkei. Chipmaker

Renesas Electronics added 2%.

($1 = 157.3100 yen)

(Reporting by Kevin Buckland; Editing by Subhranshu Sahu)