(Updates at 0600 GMT)

TOKYO, Oct 24 (Reuters) - Japan's Nikkei share average

ended marginally higher on Thursday, just about ending a

three-session losing run as investors fret about the country's

political stability.

The Nikkei ended up 0.1% at 38,143.29. However, that

was after it opened down 0.79% and then swung to gains of as

much as 0.6% in the session.

The volatility index ended flat at 27.8.

Local media have reported that the ruling Liberal Democratic

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

majority in the Oct. 27 election, set up after Prime Minister

Shigeru Ishiba dissolved the lower house of parliament on Oct.

9.

The Mainichi newspaper reported the ruling coalition may not

reach the 200 seats required for an outright majority in the

465-seat chamber.

The market is worried about the stability of the government,

said Takamasa Ikeda, senior portfolio manager at GCI Asset

Management.

"The LDP would have a hard time passing bills if the

coalition loses the majority. The government may become a lame

duck," Ikeda said.

Shuji Hosoi, senior strategist at Daiwa Securities, said,

"The market has priced in the risks of a defeat for the ruling

coalition and opposition parties may not boost as many seats as

expected because the voting rate may be low."

The broader Topix slipped 0.05% to 2,635.57, with

Toyota Motor ( TM ) losing 0.69%.

Chip-testing equipment maker Advantest ( ADTTF ) rose 2.31%

to provide the biggest boost to the Nikkei. Chip-making

equipment maker Tokyo Electron ( TOELF ) gained 1.12%.

Uniqlo-brand owner Fast Retailing ( FRCOF ) fell 0.73% to

weigh on the Nikkei the most. Technology investor SoftBank Group

fell 1.97%.

Of the Nikkei's 225 components, 73 stocks rose and 148 fell,

with four flat.