By Junko Fujita

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 .N225 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 NQc1 during Asia trade.

The U.S. stock futures index advanced after AI chip giant Nvidia NVDA.O said it will resume sales of its H20 graphics processing unit (GPU) chips to China.

The broader Topix .TOPX 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 5801.T and Fujikura 5803.T gaining 4.95% and 3.4%, respectively, to become the top percentage gainers in the Nikkei.

Ryohin Keikaku 7453.T, operator of the Muji retail brand, fell 4%, becoming the biggest drag on the Nikkei.

(Reporting by Junko Fujita; Editing by Sherry Jacob-Phillips)

((junko.fujita@thomsonreuters.com;))