(Updates with comments from BOJ deputy governor in paragraphs

6-7, current levels)

By Brigid Riley

TOKYO, Aug 7 (Reuters) - Japanese shares swung up and

down in morning trade on Wednesday in a rollercoaster week of

double-digit losses and gains that led the Bank of Japan's

deputy governor to reassure the market there would be no

interest rate rises amid the volatility.

Japanese shares swung up and down in morning trade on

Wednesday, reversing course from early losses in a rollercoaster

week of double-digit losses and gains in the benchmark Nikkei

share average.

The Nikkei was last up 1.4% at 35,171.38 as of 0215

GMT, after falling more than 2% earlier in the session.

The moves follow a 10% jump on Tuesday, its third biggest

one-day percentage gain, as the index clawed back most of its

losses from Monday's 12% plummet.

The double-digit plunge was the market's biggest single day

rout since the 1987 Black Monday crash.

Fears of U.S. recession risks and the unwinding of

investments funded by a cheap yen sparked market stress, and a

hawkish turn by the Bank of Japan (BOJ) last week raised alarm

about how fast the central bank would tighten monetary policy.

BOJ Deputy Governor Shinichi Uchida addressed those

worries on Wednesday, saying it won't hike rates when financial

markets are unstable.

"As we're seeing sharp volatility in domestic and

overseas financial markets, it's necessary to maintain current

levels of monetary easing for the time being," Uchida said in a

speech to business leaders in the northern Japan city of

Hakodate.

Comments from Federal Reserve officials this week and more

economic data have also soothed some concerns of a downturn in

the United States, but market participants are keeping a

vigilant eye on developments.

"The biggest concern in the markets ahead will be whether

fears of a U.S. recession will ease," leaving them highly

sensitive to inflation and jobs data for the time being, wrote

Morgan Stanley MUFG analysts in a note to clients.

The yen reversed on Tuesday from a seven-month peak hit at

the beginning of the week, but has since strengthened from the

previous session's lows.

The broader Topix was up 2.79%.