TOKYO, Sept 19 (Reuters) - Japan's Nikkei share average closed lower on Tuesday, with chip-related stocks leading the decline, amid caution ahead of central bank meetings in the United states and Japan.

The Nikkei fell 0.87% to 33,242.59, with chip-making equipment maker Tokyo Electron shedding 5.23% to become the biggest drag and the worst performer on the index.

Japanese markets were closed on Monday for a holiday.

"Investors were cautious ahead of big events - the central meetings in the U.S. and Japan," said Takamasa Ikeda, senior portfolio manager at GCI Asset Management.

Chip-testing making equipment maker Advantest lost 4.03% and chip maker Renesas Electronics slipped 4.75%.

Technology start-up inventor SoftBank Group slipped 3.29% after the shares of its chip designer Arm Holdings fell on the second day of trading.

Money markets expect the U.S. Federal Reserve to keep rates on hold on Wednesday, according to the CME FedWatch tool, though focus will be on the central bank's forward guidance.

The Bank of Japan (BOJ) will announce its policy decision on Friday after the conclusion of a two-day policy meeting.

Investors are waiting for comments from BOJ Governor Kazuo Ueda, who told a newspaper earlier this month that the central bank could get enough data by year-end to judge whether conditions were in place to raise short-term interest rates.

The broader Topix recovered from early losses to close 0.08% higher at 2,430.39, with heavyweights Toyota Motor rising 2.07% and Mitsubishi UFJ Financial Group climbing 2.56%.

The banking sector rose 2.08% and automakers climbed 2.06%.

The shipping industry jumped 3.12% to become the top gainer among the Tokyo Stock Exchange's 33 industry sub-indexes.

(Reporting by Junko Fujita; Editing by Subhranshu Sahu)