By Michael Taylor JAKARTA, Oct 25 (Reuters) - Malaysian palm oil futures rose to a one-week high on Tuesday, buoyed by export data and expectations of lower output, with additional support from optimism over a possible solution to the euro zone's debt problems. Asian shares rose and the euro steadied, keeping gains from the previous day as investors grew more confident about European leaders coming to a broad agreement to contain the region's debt crisis. European policymakers neared a deal over the weekend on bank recapitalization, and France and Germany appeared close to agreement on how to use the European Financial Stability Facility (EFSF) to stave off contagion in the bond market. "Pretty strong, it is holding pretty well" said a Kuala Lumpur-based trader. "It is because of the external crisis, with people talking about the euro zone stabilizing." Benchmark January palm oil futures FCPOc3 on the Bursa Malaysia Derivatives Exchange traded 1.4 percent higher at 2,929 ringgit ($934) a tonne. Prices earlier hit a peak at 2,931, their highest level since Oct. 17. Traded volumes for the January palm contract stood at 5,087 lots of 25 tonnes each, compared with 12,213 lots on Monday. A slowdown in Europe, the second-largest palm consuming region after Asia, could weaken demand, although palm oil could maintain its market share in the region as it is the cheapest edible oil. "We remain bullish on the demand for edible oil in food usage in view of the rising income levels and population growth in China, India and Indonesia," CIMB analysts said in a note. "However, if the growth of the developed economies slows, it may dent the growth of Asian economies, slowing the increase in the income levels of the low- to medium-income groups. This could curb the demand growth prospects for edible oils." At a time when palm oil is entering a lower production cycle in the final quarter, demand appears robust. Cargo surveyors Intertek Testing Services said exports of Malaysian palm oil products for Oct. 1-25 rose 16.4 percent. "Export data was OK," added the trader. "Demand is pretty firm ... we are going to move into the monsoon season." In comparative markets, U.S. soyoil for December delivery gained in Asian trade, while China's most active May 2012 soybean oil contract <0#DBY:> also inched higher. Brent was steady near $111 on Tuesday as looming concern over Europe's economic health kept prices in check, while U.S. oil rose for a third straight day, boosted by improved company earnings. Reuters technical analyst Wang Tao said palm prices would break a resistance at 2,941 ringgit per tonne and head towards 3,014 ringgit. Palm, soy and crude oil prices at 0547 GMT Contract Month Last Change Low High Volume M'ASIA PALM OIL NOV1 2922 +32.00 2908 2922 259 M'ASIA PALM OIL DEC1 2931 +40.00 2892 2933 1804 M'ASIA PALM OIL JAN2 2929 +39.00 2896 2931 5087 M'ASIA PALM OIL FEB2 2932 +36.00 2901 2933 2361 DALIAN SOY OIL MAY2 9322 +80.00 9266 9384 417426 CBOT SOY OIL DEC1 52.14 +0.35 51.68 52.22 3930 NYMEX CRUDE DEC1 91.64 +0.37 91.10 92.07 9129 Palm oil prices in Malaysian ringgit per tonne CBOT soy oil in U.S. cents per pound Dalian soy oil in Chinese yuan per tonne Crude in U.S. dollars per barrel ($1=3.135 ringgit) (Editing by Clarence Fernandez)

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