GLOBAL MARKETS-Yen driven to 15-year highs, stocks drift

* Stocks hold gains, extend multi-week highs

* Yen at 15-year peak after Prime Minister survives vote

* German economic sentiment slips

By Daniel Bases

NEW YORK, Sept 14 (Reuters) - The yen hit a 15-year high versus the U.S. dollar on Tuesday after Japan's ruling party survived a leadership vote, while global share prices traded flat as investors survey the landscape from multi-week peaks.

Gold rose modestly and oil edged up in cautious trade ahead of weekly oil inventory reports. [ID:nN14252120]

The yen traded below 83 per U.S. dollar and the euro hit a one-month high against the greenback, breaking above $1.29.

Stronger-than-expected U.S. retail sales and a raised outlook from U.S. electronics retailer Best Buy helped limit equity sales by investors looking to lock in profits.

Recent better-than-expected data "along with very negative investor sentiment, which is a contrarian indicator, have helped propel markets higher over the past couple weeks," said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut.

"Markets are taking a breather today and a little bit of profit-taking."

U.S. equities edged to five-week highs, recouping some early session losses. In mid-morning New York trade, the Dow Jones industrial average <.DJI> rose 23.76 points, or 0.23 percent, to 10,567.89. The Standard & Poor's 500 Index <.SPX> gained 2.36 points, or 0.21 percent, at 1,124.26. The Nasdaq Composite Index <.IXIC> climbed 8.66 points, or 0.38 percent, to 2,294.37.

European shares drifted lower. The FTSEurofirst 300 <.FTEU3> index of top European shares was down 0.05 percent at 1,087.41 in a choppy session after closing on Monday at its highest level since late April.

MSCI's All-Country World Index <.MIWD00000PUS> rose to a four-month high, up 0.58 percent on the day.

Tokyo's benchmark Nikkei-225 stock index <.N225> finished down 0.24 percent.
"Fear" and shopping - U.S. retail sales in a volatile market environment. For graphic: http://link.reuters.com/zux72p

YEN PLAY

The yen traded just above 83 against the U.S. dollar, its strongest level since mid-1995.

Prime Minister Naoto Kan's victory over party heavyweight Ichiro Ozawa, who had made more strident calls to curb the yen's rise, raised speculation that Japanese authorities would not intervene imminently.

"Kan's not very attractive for the markets. It will probably mean more of the same in terms of policy, so there is no reason to welcome him," said Mitsuhige Akino, chief fund manager at Ichiyoshi Investment Management.

"The threat of intervention will hang over the market but will there be international cooperation? Probably no. So the market will continue to test Kan's resolve," added Simon Derrick, head of currency research in Bank of New York Mellon.

The euro traded up 0.91 percent at $1.2995 while the Australian dollar reached a two-year high against the U.S. dollar at $0.9435 before slipping back to $0.9420, up 0.7 percent.
PDF on Japan leadership vote: http://r.reuters.com/vyk92p

Government debt prices were generally stronger in a flight-to-safety trade, despite the U.S. retail sales report, which contrasted with a survey showing economic sentiment in Germany fell more than forecast in September. The ZEW survey turned negative for the first time since March 2009 and threw into doubt the economic recovery of Europe's largest economy. [ID:nLDE68C1RH]

December Bund futures rose 58 basis points to 130.50, off an early high in the 130.70 range. Benchmark 10-year U.S. Treasuries rose 10/32 of a point in price, pushing the yield down to 2.70 percent.

U.S. light sweet crude oil rose 75 cents to $77.94 per barrel. Spot gold prices rose $23.55 to $1268.50. (Additional reporting by Nick Olivari, Leah Schnurr, Jessica Mortimer, Tamawa Desai, Shinichi Saoshiro and Aiko Hayashi; Editing by Dan Grebler)