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SINGAPORE (Reuters) � Japan intervened in foreign exchange markets for the first time in six years on Wednesday to stem economic damage from the surging yen, pushing its currency sharply lower and lifting Tokyo stocks by almost 3 percent.

By early afternoon, the dollar was up more than 2 percent at 85.00 yen, rebounding from a fresh 15-year low of 82.87 yen against the Japanese currency hit in early trade.

Finance Minister Yoshihiko Noda confirmed the intervention, saying Tokyo was communicating with authorities overseas but indicating that Japan had acted alone.

Market sources said it continued to intervene through the morning, selling the yen to stem a rise that was threatening the country's fragile economic recovery.

The Nikkei (.N225) reversed early losses and surged 2.8 percent on word of the intervention. Shares of exporters, which have been dogged by the yen's strong gains this year, were among the biggest winners, with Sony Corp (6758.T) rising nearly 4 percent.

"Japan's authorities have declared war in sending a signal that they will not allow the dollar/yen to fall to 80 easily," said Lee Jin-woo, head of the research center at NH Investment & Futures in Seoul.

"It has become difficult for investors to make a one-way bet on a stronger yen. I think dollar/yen may try to rise to 86, a 60-day moving average and where players have built up large dollar-short positions."

Simon Flint, Nomura Securities' global head of foreign exchange research based in Singapore, said Japan will be seen as a special case.

"Obviously its economy has been in significant trouble for a while, stocks have been depressed for some time, export performance relative to the Asian peer group has been very weak. To some degree there will be some sympathy in the rest of the world for Japan's predicament."

Prime Minister Naoto Kan's government has been trying to talk down the yen in recent weeks but had stopped short of intervening in the markets, apparently worried that acting without Group of Seven partners would not be very effective.

Kan was re-elected ruling party leader on Tuesday, decisively fending off a challenge from powerbroker Ichiro Ozawa, an outspoken advocate of intervention.

But it was unclear whether Kan's government had the stomach for a prolonged and expensive campaign similar to Japan's last foray into foreign exchange markets in 2003-2004.

U.S. officials at the Federal Reserve and the Treasury declined to comment immediately about Tokyo's action.

Stocks elsewhere in Asia struggled.

The MSCI index of Asia Pacific stocks outside Japan (.MIAPJ0000PUS) rose 0.1 percent, focusing more on questions surrounding the global economic recovery and held in check by a lackluster performance on Wall Street overnight. (.N)

COMMODITIES FALL

Spot gold, a traditional safe port of call amid volatile currency and stock markets, fell $3 to $1,267.30 ounce by midday after rising as high as $1,274.75 on Tuesday -- its biggest one-day gain in four months as economic uncertainty lured nervous investors into bullion.

Oil prices also fell after Enbridge Inc said repairs to a key pipeline taking Canadian crude to the United States were nearly complete and it hoped to gain approval to resume shipments.

U.S. crude for October delivery was down 60 cents, or 0.78 percent, at $76.20 per barrel.

U.S. share prices ended mostly lower on Tuesday. The Dow Jones industrial average (.DJI) fell 0.2 percent, the Standard & Poor's 500 Index (.SPX) lost 0.1 percent and the Nasdaq Composite Index (.IXIC) rose 0.2 percent.

(Additional reporting by Charlotte Cooper in Tokyo)

(Editing by Kim Coghill)

TOKYO (Reuters) � Japan has intervened in the currency market on Wednesday for the first time in six years, buying the dollar to stem a rise in the yen that is threatening a fragile economic recovery.

Finance Minister Yoshihiko Noda confirmed the intervention in a news conference.

The Bank of Japan appeared to have bought dollars at around 83 yen, two traders said.

The dollar, which had hit a new 15-year-low against the yen earlier in the morning, spiked higher.

Prime Minister Naoto Kan's government has been trying to talk down the yen but until Wednesday had stopped short of intervening in the markets, apparently worried that acting without Group of Seven partners would not be very effective.

(Reporting by Tokyo newsroom; Editing by Edwina Gibbs)

SEATTLE (Reuters) � Oracle Corp Chief Executive Larry Ellison is expected to present his new co-president, former Hewlett-Packard CEO Mark Hurd, to investors on Thursday as the world's third largest software company reports what analysts believe will be a solid increase in earnings in the face of a faltering recovery in technology spending.

Ellison, who hired Hurd after Hurd left HP under a cloud of scandal last month, could also detail what his old friend is expected to do at Oracle, as the company integrates its acquisition of hardware-maker Sun Microsystems.

Hurd himself also will get the first chance to talk directly to Oracle investors, despite HP's attempts to block his move on the grounds that he will spill its trade secrets.

"The odds are pretty good that Hurd will make some kind of comment on the call," said Richard Williams, an analyst at New Jersey-based Cross Research, who thinks the move for Hurd was a boost for Oracle.

"His talent will be very useful in taking the Sun acquisition and driving value there. That whole Sun strategy is going to drive major change throughout the top 10 or 20 tech companies," said Williams.

Oracle, which competes with SAP AG and International Business Machines with its business software and database products, also is vying with equipment makers such as HP after the Sun deal, as it looks to combine its hardware and software offerings.

By producing the full "stack" of products and services for its customers, Oracle is trying to snag a larger share of technology spending, which looked firmly on the road to recovery three months ago, but now seems to be in question.

"Business is a little better, but there are weak spots that are showing up in various places," said Williams.

FOCUS ON FORECAST

For the quarter ended August 31 -- which is the first quarter in Oracle's fiscal 2011 -- Wall Street is expecting earnings of 37 cents per share, excluding some items, on average. That is up from 30 cents in the year-ago quarter, according to Thomson Reuters I/B/E/S.

Sales are expected to rise to $7.3 billion, from $5 billion last year, when Oracle was hard-hit by companies shying away from spending on big tech projects. The former Sun hardware business, reporting only its second full quarter as part of Oracle, is expected to contribute about $1 billion in revenue.

Investors will be most closely watching the company's forecast -- usually made in a conference call after the earnings announcement -- for growth in new software sales, which are seen as the key indicator of Oracle's financial prospects as they generate long-term recurring maintenance revenues.

Three months ago, Oracle president Safra Catz forecast new software sales would rise 2 percent to 12 percent, citing strong business across the board.

Analysts generally expect Oracle to hit the high end of that forecast, but as fears of economic weakness return -- especially in Europe, where Oracle has many customers -- the forecast for the current quarter could be less optimistic.

"In the (fiscal) fourth quarter, they were pretty darn bullish," said Kim Caughey, senior analyst at Fort Pitt Capital Group. "I'm just looking for what they think will happen in this quarter."

The fact that Oracle is the first big tech company to report numbers from August makes them a bellwether for others in the sector, which has already seen the outlook for tech spending darken considerably in the last three months.

In August, Cisco Systems Inc gave a weaker-than-expected revenue forecast and CEO John Chambers spoke of "unusual uncertainty" in the economy, raising fears of a "double dip" in technology spending.

Last week chip makers National Semiconductor Corp and Texas Instruments Inc cited weak demand for personal computers and other devices that use microchips.

Intel Corp, the leading PC chipmaker, also warned last month that third-quarter revenue could fall short of its own estimates by more than $1 billion, reinforcing doubts about the strength of a technology sector recovery.

(Reporting by Bill Rigby; editing by Carol Bishopric)

WASHINGTON (Reuters) � Sales at U.S. retailers posted their largest gain in five months in August on strong receipts at gasoline stations and clothing outlets, further assuaging fears of a double-dip recession.

The Commerce Department said on Tuesday total retail sales rose 0.4 percent following a revised 0.3 percent rise in July. It was the second straight month of gains in retail sales, which are a measure of consumer health. July sales had been previously reported to have increased 0.4 percent.

Analysts polled by Reuters had forecast retail sales rising 0.3 percent last month. Compared to August last year, sales were 3.6 percent higher.

"It suggests American consumers remain resilient despite the backdrop of high unemployment and declining home values. On the margin, this data reduces some concerns about a double-dip recession," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.

U.S. stock index futures turned positive after the report, while Treasury debt prices pared gains. The dollar briefly trimmed losses versus the yen.

Data so far for August, including private payrolls and manufacturing, have pointed to a tentative improvement in the economy after a recent soft patch.

The recovery from the worst recession since the 1930s has cooled off as the boost from an $814 billion government stimulus package fades and unemployment remains stubbornly high.

The sagging economy has left the Democratic Party bracing for a backlash from voters unhappy with a 9.6 percent unemployment rate in November's congressional elections.

Polls suggest the Republicans could take the House of Representatives and perhaps even the Senate in the November 2 vote, which would put them in position to determine any new economy-boosting initiatives.

Last month, motor vehicle and parts purchases fell 0.7 percent after increasing 1.0 percent in July. Excluding autos, sales increased by a bigger-than-expected 0.6 percent in August, also the largest increase since March, after a 0.1 percent gain the prior month. Markets had expected sales excluding autos to increase 0.3 percent in August.

Receipts at gasoline stations increased 1.9 percent after rising 2.2 percent in July. Building materials and garden equipment sales were unchanged after falling 0.4 percent in July, suggesting some stability after sharp declines following the end in April of a popular homebuyer tax credit.

Clothing and clothing accessories sales increased 1.2 percent.

Core retail sales, which exclude autos, gasoline and building materials, rose 0.5 percent after dipping 0.1 percent in July. Core sales correspond most closely with the consumer spending component of the government's gross domestic product report.

Receipts at sporting goods, hobby and book stores rebounded 0.9 percent last month. Purchases at electronics and appliance stores fell 1.1 percent.

(Reporting by Lucia Mutikani; Additional reporting by Vivianne Rodrigues in New York; Editing by Andrea Ricci)

NEW YORK (Reuters) � Best Buy (BBY.N) reported a higher-than-expected quarterly profit and raised its full-year outlook as it benefited from strength in its mobile phone business, and its shares rose nearly 8 percent.

The largest consumer electronics chain, which operates stores under the Best Buy, Best Buy Mobile, and Car Phone Warehouse names, said its operating margin rose 1.1 percentage points to 3.6 percent in the second quarter ended August 28.

Best Buy has stepped up its focus on selling more mobile phone, broadband and TV connections in a bid to boost margins while prices for televisions fall.

"We're still in the early stages of our Connected World strategy, but this quarter's results give me continued confidence that we're making progress," Chief Executive Officer Brian Dunn said.

Net profit rose to $254 million, or 60 cents a share, in the second quarter from $158 million, or 37 cents a share, a year earlier.

Analysts on average were expecting a profit of 44 cents a share, according to Thomson Reuters I/B/E/S.

Sales rose about 3 percent to $11.34 billion, but missed the analysts' average estimate of $11.54 billion. Sales at stores open at least for 14 months fell 0.1 percent.

The company raised its fiscal 2011 earnings forecast to a range of $3.55 to $3.70 a share, up from its prior outlook of $3.45 to $3.60.

Best Buy shares rose 7.9 percent to $37.40 in premarket trading.

(Reporting by Dhanya Skariachan, editing by Dave Zimmerman and Lisa Von Ahn)

PARIS ( Reuters) � Stock index futures pointed to a mixed opening on Wall Street on Tuesday, with futures for the S&P 500 up 0.1 percent, Dow Jones futures down 0.05 percent and Nasdaq 100 futures up 0.08 percent at 4 a.m. EDT.

August retail sales data is due at 1230 GMT. Economists expect a 0.3 percent rise compared with a 0.4 percent increase in July. The market is also expected to keep an eye on data on business inventories for July, due at 1400 GMT.

Japan's Nikkei index dipped from a three-week closing high hit the day before as the yen rose to a 15-year high against the dollar, while European stocks were mostly unchanged in morning trade after reaching 4-1/2 month highs in the previous session.

Oil was steady near one-month highs above $77 a barrel ahead of inventory reports which are expected to show crude stock draws as the shutdown of the biggest Canada-U.S. pipeline enters a fifth day.

Shares in vehicle and vehicle parts makers will be eyed after Toyota Motor Corp's (7203.T) executives said on Monday it will offer a plug-in version of its Prius, positioned to be the cheapest green car of its kind by 2012, and could have two electric cars in the U.S. market by that time.

Oil stocks were expected to be in focus after BP (BP.L) (BP.N) and partners in the ruptured Macondo Gulf well said on Monday that thousands of fishermen, seafood processors, restaurants, hotel owners and others may not yet have the right to sue over the spill, according to court papers. BP (BP.L) and its partners such as Transocean Ltd (RIG.N) and Halliburton Co (HAL.N) said the majority of alleged victims who have brought about 400 lawsuits must first take their claims to a $20 billion fund established by BP.

Dutch group Philips Electronics (PHG.AS) (PHG.N) said on Tuesday it wants to grow faster than the economy, firming its profitability targets, while keeping its three-pillar strategy.

U.S. stocks advanced to their highest levels in five weeks on Monday, taking the S&P 500 index near the top of its summer range on upbeat Chinese factory data and new global banking rules.

The Dow Jones industrial average (.DJI) gained 81.36 points, or 0.78 percent, to 10,544.13. The Standard & Poor's 500 Index (.SPX) climbed 12.35 points, or 1.11 percent, to 1,121.90. The Nasdaq Composite Index (.IXIC) jumped 43.23 points, or 1.93 percent, to 2,285.71.

(Reporting by Blaise Robinson; Editing by Greg Mahlich)