TOKYO, July 22 (Reuters) - Japan's Nikkei share average

climbed on Tuesday, as investors returning from an extended

holiday weekend reacted positively to the outcome of the upper

house election, which aligned with market expectations.

As of 0023 GMT, the Nikkei was up 1.1% at 40,241.61.

The broader Topix rose 0.78% to 2,856.49.

Japan's ruling coalition lost control of the upper house in

an election on Sunday, further weakening Prime Minister Shigeru

Ishiba's grip on power even as he vowed to remain party leader.

The election was closely monitored as Ishiba's party also

lost control of the more powerful lower house in elections last

year and his Liberal Democratic Party was facing calls from

opposition parties pledging to cut taxes.

"Investors bought stocks as the election outcome was in line

with their expectations," said Takamasa Ikeda, senior portfolio

manager at GCI Asset Management.

"And they thought the election outcome would not have much

impact on Japan's policy framework immediately, as Ishiba said

he has no plans to expand his coalition."

Shares of technology investor SoftBank Group jumped

4%, making them the largest contributor to the Nikkei's gains.

Chip-related Advantest ( ADTTF ) and Tokyo Electron ( TOELF ) rose

2.24% and 0.95%, respectively.

Heavy machinery maker Mitsubishi Heavy Industries ( MHVYF )

jumped 5.4% to become the top percentage gainer in the Nikkei.

Medical equipment maker Olympus fell 2%, becoming

the biggest drag in the Nikkei.