Japan's ruling coalition loses majority, election outcome in balance

TOKYO, Oct 27 (Reuters) - Japan's ruling coalition lost its parliamentary majority in a drubbing at Sunday's national election, raising uncertainty over the make-up of the next government and the outlook for the world's fourth-largest economy.

Prime Minister Shigeru Ishiba's Liberal Democratic Party (LDP), which has ruled Japan for almost all of its post-war history, and junior coalition partner Komeito took 215 seats in the lower house of parliament, public broadcaster NHK reported.

That was down from the 279 seats they held previously and marked the coalition's worst election result since it briefly lost power in 2009.

"This election has been very tough for us," a sombre-looking Ishiba told TV Tokyo.

Komeito's Keiichi Ishii, who took over as that party's new leader last month, lost in his district.

The biggest winner of the night, the main opposition Constitutional Democratic Party of Japan (CDPJ), had 148 seats, up from 98 previously, as voters punished Ishiba's party over a funding scandal and inflation.

The outcome may force parties into fractious power-sharing deals to rule, potentially ushering in political instability as the country faces economic headwinds and a tense security situation in East Asia.

"This is not the end, but the beginning," CDPJ leader Yoshihiko Noda told a press conference, adding that his party would work with other opposition parties to aim for a change of government.

Ishiba earlier in the night said he would wait until the final results before considering potential coalitions or other power-sharing deals.

The prime minister had called the snap poll immediately after being elected to head the party last month, hoping to win a public mandate for his premiership. His predecessor, Fumio