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

traded higher on Wednesday, tracking overnight gains on Wall

Street, but the advance was checked as investors grew cautious

ahead of chip equipment maker ASML's earnings due later in the

day.

The Nikkei was up 0.58% to 68,136 as of 0152 GMT,

after rising as much as 1.5% earlier in the session.

The broader Topix edged up 0.21% to 4,047.62.

Overnight, the S&P 500 and the Nasdaq advanced as solid

results from big banks and a cooler-than-expected inflation

report boosted risk appetite amid rising tensions in the Middle

East.

The U.S. semiconductor index, a barometer for

Japanese chip-related shares, rose 2.54%.

"The U.S. shares were strong overnight, but the market is

now cautiously waiting for the outcome of ASML earnings," said

Hitoshi Asaoka, chief strategist at Asset Management One.

The Netherlands-based ASML, the biggest supplier of

equipment used to manufacture AI chips, reports quarterly

earnings on Wednesday, looking to justify its chunky valuation

and demonstrate how it will contend with U.S. moves to block

exports to China.

Its peer Tokyo Electron rose 2.67%, and chip-testing

equipment maker Advantest ( ADTTF ) was up 3%.

Financial stocks rose, with Mitsubishi UFJ Financial Group ( MUFG )

and Nomura Holdings ( NMR ) gaining 1.5% and 2.87%,

respectively.

Shares of system developers fell following a 25% decline of IBM

overnight after the company warned second-quarter

revenue would fall below estimates.

NEC and Nomura Research fell 5% each,

while computer maker Fujitsu ( FJTSF ) was down 4.2%. Consulting

firm BayCurrent ( BYCRF ) fell 5.17%.

SoftBank Group fell 2.74%, weighing most on the

Nikkei. Uniqlo-brand owner Fast Retailing ( FRCOF ) slipped

0.49%.

Of more than 1,500 stocks trading on the Tokyo Stock

Exchange's prime market, 57% rose, 38% fell and 3% traded

flat.