(Updates to add details and closing prices)

By Satoshi Sugiyama

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

on Wednesday ahead of key U.S. inflation data, supported by chip

stocks and gains in South Korean shares, while jitters persisted

over fading prospects for a breakthrough in the Middle East

conflict.

The Nikkei climbed 0.83% to close at 67,524.06,

after swinging between gains and losses earlier in the session.

The broader Topix ended 0.94% higher at 4,139.00.

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

the day, for clues to the direction of Federal Reserve interest

rates.

"Concerns about inflation appear to be contributing to a

weak tone that is capping the stock market's upside," said

Wataru Akiyama, an equities strategist at Nomura Securities,

adding that the earnings growth outlook for AI-related firms had

not yet deteriorated significantly.

Semiconductor-related shares, which weigh heavily on Japan's

benchmark Nikkei index, turned positive after a mixed start.

Memory chipmaker Kioxia ( KXHCF ) gained 3.87% while chip

manufacturing equipment maker Tokyo Electron ( TOELF ) added

2.61%. Tech-heavy South Korea's index, which often moves

in tandem with Nikkei, jumped 3.68%.

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.

The uncertainties drove oil prices higher on Wednesday, with

Brent futures up 0.84% at $89.66 a barrel and U.S. West

Texas Intermediate (WTI) crude climbing 0.87% to $83.92.

Market breadth was positive, with 135 advancers in the

Nikkei index against 88 decliners and two unchanged.

The largest percentage gainers in the index were Taiyo Yuden ( TYOYF )

up 7.51%, followed by Furukawa Electric ( FUWAF )

gaining 6.83%.

The steepest decliner was Rakuten Group ( RKUNF ), down

13.77% in its biggest one-day drop in two years, followed by

Nitori Holdings ( NCLTF ), which fell 5.11%.