TOKYO, July 14 (Reuters) - Japanese shares were sluggish

on Monday as concerns about an upcoming domestic election and

unresolved trade talks with the United States weighed on

investor sentiment.

The Nikkei 225 Index was down 0.2% as of the midday

break, poised for a third straight session of decline. The

broader Topix was flat.

Japanese Prime Minister Shigeru Ishiba has said Japan would

continue tariff negotiations with the U.S. after U.S. President

Donald Trump last week raised tariffs on Japanese imports to 25%

starting August 1. However, prospects of Ishiba's ruling

coalition retaining its majority in the upper house after a vote

on July 20 are dimming.

"If the ruling party were to lose its majority in the upper

house, there is a risk that trade negotiations with the U.S.

will be delayed, and market concerns about fiscal expansion will

increase," said Nomura strategist Fumika Shimizu.

"I think there is a great possibility that the Japanese

stock market will be affected by these developments."

There were 115 advancers on the Nikkei index against 108

decliners. The largest losers by percentage were videogame maker

Nexon ( NEXOF ), down 3.6%, followed by chip-industry supplier

Lasertec Corp ( LSRCF ), which lost 3.5%.

Nissan Motor ( NSANF ) led gainers on the Nikkei with a 3%

advance, recovering slightly from a plunge last week. Mitsubishi

Heavy Industries ( MHVYF ) followed with a 2.7% gain.