Japan's Nikkei tracks Wall Street gains ahead of BOJ policy decision

TOKYO, June 17 (Reuters) - Japan's Nikkei share average ticked higher on Tuesday, tracking overnight gains on Wall Street, as investors awaited a policy decision from the Bank of Japan that could include a slower pace of bond purchase reductions.

The Nikkei .N225 rose 0.4% to 38,482.43 as of 0053 GMT, while the broader Topix .TOPX added 0.1%.

All three major U.S. stock indexes advanced strongly on Monday as market sentiment improved with Iran seeking a ceasefire with Israel.

Japan's central bank is widely expected to keep interest rates steady on Tuesday, but it may as much as halve the current pace of monthly Japanese government bond purchases to 200 billion yen from the start of the next fiscal year in April.

At the same time, BOJ Governor Kazuo Ueda is likely to reiterate a commitment to raising rates, despite the increased uncertainty from U.S. trade tariffs and global conflicts including in the Middle East.

The policy announcement is likely to come between 0230-0400 GMT, followed by Ueda's press conference at 0630 GMT.

Japanese growth shares outperformed, with a Topix index of the securities .TOPXG up 0.2% compared with a 0.1% decline for value shares .TOPXV.

Chip-related stocks were among the Nikkei's top performers. Disco 6146.T was the biggest percentage gainer with a 6.4% surge. Advantest 6857.T climbed 3.8% and Tokyo Electron 8035.T advanced 3.3%.

Out of the Nikkei's 225 components, 101 rose, 119 fell and five traded flat.