TOKYO, Aug 12 (Reuters) - Japan's Nikkei share average was

trading sideways on Wednesday ahead of key U.S. inflation data,

while markets remained jittery over fading prospects for an

immediate breakthrough in the Middle East conflict.

The Nikkei was last up 0.06% at 67,011.66 as of 0202

GMT, after swinging between a gain of 0.26% and a loss of 0.35%.

The broader Topix rose 0.43% to 4,118.18.

All eyes are on the U.S. Consumer Price Index, due on

Wednesday, for clues to the direction of Federal Reserve

interest rates.

"Investors appear reluctant to buy aggressively ahead of U.S.

CPI data due later in the day, as markets are still trying to

assess whether the Federal Reserve could bring forward its rate

hikes," said Wataru Akiyama, an equities strategist at Nomura

Securities.

AI-related shares that weigh heavily on Japan's benchmark

Nikkei index were mixed. Lasertec ( LSRCF ), a semiconductor

inspection equipment maker, lost 2.9% whereas chemical and

advanced materials company Resonac ( SHWDF ) surged 6.73%.

The U.S. and Yemen's Iran-aligned Houthis reported separate

attacks on shipping on Tuesday, while Iran's top security

official said the vital Strait of Hormuz shipping route will

remain closed unless the United States accepts Iran's conditions

to end the war.

Japan's mining sub-index rose 2.75%, the biggest

gain among the Tokyo Stock Exchange's 33 industry sub-indexes,

tracking a slight rise in oil prices as Brent futures and U.S.

West Texas Intermediate crude traded around $80 a barrel.

Overall market breadth was positive, with 122 advancers on

the Nikkei index against 100 decliners and three unchanged.

The largest percentage gainers in the index were M3

up 9.88%, followed by the Yokohama Rubber Company ( YORUF )

gaining 8.39%.

The largest losers by percentage in the index were Rakuten

Group ( RKUNF ), down 11.62%, followed by Sumitomo Metal Mining ( STMNF )

, shedding 4.29%.