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

fell on Tuesday amid concerns the ruling party may lose its

lower house majority in the coming election, while Wall Street's

weak finish overnight also weighed on market sentiment.

The Nikkei was down 1.21% at 38,482.12, as of 0214

GMT, after opening 0.05% lower.

The Dow Jones Industrial Average and S&P 500 closed lower on

Monday, retreating from Friday's record high closes and six

straight weekly gains as Treasury yields rose and investors wary

of high valuations awaited earnings from major companies.

Japan's local media reported that the Liberal Democratic

Party (LDP) and its coalition partner Komeito may lose its

majority in the lower house in the Oct. 27 election.

A report last week said the LDP may not reach the 233 seats

it needs for an outright majority in the 465-seat chamber.

Prime Minister Shigeru Ishiba dissolved the lower house of

parliament on Oct. 9, setting up the snap election.

"The market does not like turmoil or uncertainties. The LDP

may need to find another party to maintain the majority in the

lower house, which means it may have to alter some of its

policies," said Shigetoshi Kamada, general manager of the

research department at Tachibana Securities.

"The Nikkei tended to be on the upward trend ahead of a

nationwide election, but this time it's the opposite. So,

investors needed to draw a scenario from scratch."

Uniqlo-brand owner Fast Retailing ( FRCOF ) fell 2.47% to

drag the Nikkei the most. Chip-making equipment maker Tokyo

Electron ( TOELF ) fell 2.19% and chip-testing equipment maker

Advantest ( ADTTF ) slipped 1.74%.

The broader Topix fell 0.96% to 2,654.19, led by a

1.33% decline in banking group Mitsubishi UFJ Financial Group ( MUFG )

.

(Reporting by Junko Fujita; Editing by Subhranshu Sahu)