TOKYO, July 15 (Reuters) - Japan's Nikkei share average

nudged higher on Tuesday, as gains in technology stocks were

partially tempered by caution ahead of local election results

and U.S. inflation data.

The Nikkei was up 0.12% at 39,507.28 by the midday

break. The index rose as much as 0.46% earlier in the session,

buoyed by gains in Nasdaq futures during Asia trade.

The U.S. stock futures index advanced after AI chip giant

Nvidia ( NVDA ) said it will resume sales of its H20 graphics

processing unit (GPU) chips to China.

The broader Topix edged 0.05% higher to 2,824.15.

"The Nasdaq's gains were a positive cue for the Nikkei, but

the gains of the Nikkei were limited as the market awaited U.S.

price data and the outcome of the national election," said

Takamasa Ikeda, senior portfolio manager at GCI Asset

Management.

Global investors also await U.S. consumer price data for

June, due later in the day, and will monitor for any upward

pressure on prices from tariffs.

In Japan, markets are wary of a potential defeat for the

Liberal Democratic Party and its coalition partner Komeito in

the upcoming upper house election on July 20.

A potential defeat could empower opposition parties that

have pledged in their campaign platforms to cut or abolish the

sales tax.

Shares of chip-making equipment maker Tokyo Electron rose

1.72% to become the biggest source for the Nikkei's gains. Cable

makers, which are the gauge for the data centre investments,

jumped, with Furukawa Electric ( FUWAF ) and Fujikura ( FKURF )

gaining 4.95% and 3.4%, respectively, to become the top

percentage gainers in the Nikkei.

Ryohin Keikaku ( RYKKF ), operator of the Muji retail brand,

fell 4%, becoming the biggest drag on the Nikkei.