Japan's Nikkei eases back from record high ahead of expected BOJ rate hike

(Updates prices ahead of midday trading recess)

By Kevin Buckland

TOKYO, June 16 (Reuters) - Japan's Nikkei share average edged back from a record high on Tuesday as traders awaited an expected Bank of Japan interest rate hike later in the day.

Market participants widely expect a quarter-point rate hike from the central bank and a signal of more to follow. The decision doesn't come at a fixed time, but is generally announced between 0300 and 0500 GMT, midway through the trading day.

The Nikkei declined 0.2% to 69,167.78 by 0145 GMT, falling back from an all-time peak of 69,682.23 reached on Monday following an 8% rally over two days.

The broader Topix fell 0.4% to 3,982.45 after also marking a historic high in the previous session at 4,032.39.

"Rather than there being any particular bad news, this looks like a retracement after the very steep climb in the Nikkei in the previous two sessions," said Nomura strategist Maki Sawada.

On the Nikkei, 153 of its 225 components were down, while 70 rose and two traded flat.

Heavily weighted AI stocks were split.

Chip-testing machinery makers outperformed, with Advantest (ADTTF) gaining 2.1%, as did data centre plays, with Fujikura (FKURF) and Furukawa Electric (FUWAF) each up around 5.8%.

Chip-making equipment manufacturers declined, with Tokyo Electron (TOELF) slipping 1.8%.

AI-focused startup investor SoftBank Group (SFTBF) lost 1.5%. (Reporting by Kevin Buckland; Editing by Subhranshu Sahu)