(Updates with closing prices)

By Junko Fujita

TOKYO, Sept 25 (Reuters) - Japan's Nikkei share average

marked a record high close for a third session on Thursday, as

investors scooped up cheap shares, betting on the potential for

further market gains.

The Nikkei rose 0.27% to close at 45,754.93.

The broader Topix rose 0.47% to 3,185.35.

"Investors bought stocks that had been left behind the

latest rally," said Shoichi Arisawa, general manager of the

investment research department at IwaiCosmo Securities.

"These days, the stocks that lead the market's gain rotate,

which is a good sign for the market's further gains," he said.

On Thursday, the nonferrous metals sector

jumped 3.24%, becoming the biggest percentage gainer among the

Tokyo Stock Exchange's 33 industry sub-indexes.

Sumitomo Metal Mining ( STMNF ) surged 11.3%, the biggest

percentage gainer on the Nikkei.

Energy sectors rose after oil prices touched a seven-week

high on Wednesday, with the refiners rising 1.82%.

The utility sector rose 1.36%, with Tokyo

Electric Power ( TKECF ) jumping 5.24%.

Energy explorers rose 1.52%, with Inpex ( IPXHF )

gaining 0.94%.

Shares of Okinawa-based beer maker Orion Breweries

were priced at 1,863 yen in its market debut, more than twice

the IPO price of 850 yen.

The shares rose to as high as 2,262 yen before closing at

1,950 yen, 4.66% higher than the IPO price.

IwaiCosmo's Arisawa said that while there is demand for

buying on a dip, investors sold stocks that had gained in recent

sessions.

Chip-testing equipment maker Advantest ( ADTTF ), one of the

stocks that led the Nikkei's rally, fell 2.43% to become the

biggest drag on the Nikkei.

Of more than 1,600 stocks trading on the TSE's prime

section, 63% rose and 31% fell, and 4% were little changed.