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

inched higher on Thursday after three straight sessions of

falls, with market participants focussing on the upcoming lower

house election.

The Nikkei had risen 0.19% to 38,177.51 by 0130 GMT,

after earlier falling to its lowest since Oct. 2 at 37,712.19.

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.

Prime Minister Shigeru Ishiba dissolved the lower house of

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

"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," said

Shuji Hosoi, senior strategist at Daiwa Securities.

"The Nikkei may turn negative later because the overall

market has not gained momentum and volatility is still high."

The Nikkei 225 Volatility Index rose 16% to 32.5.

The Mainichi newspaper reported the ruling coalition may not

reach 200 seats 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.

The broader Topix was flat at 2,637.11.

Chip-testing equipment maker Advantest ( ADTTF ) rose 1.63%

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

equipment maker Tokyo Electron ( TOELF ) gained 1.43%.

Technology investor SoftBank Group fell 1.94% to

weigh on the Nikkei the most. Robot maker Fanuc ( FANUF ) slipped

1%.