* Euro, riskier currencies buoyed by China comments * German, French GDP points to slowdown in euro zone * Greek bailout uncertainty persists but markets optimistic * USDJPY hits 3-1/2 mth high after BOJ easing measures By Nia Williams LONDON, Feb 15 (Reuters) - The euro rose against the dollar on Wednesday after China said it would continue investing in euro zone debt, although further gains looked dependent on whether Greek leaders signed a commitment to implement tough austerity measures. The dollar outperformed the yen, however, extending gains to hit a 3 1/2-month high after monetary easing steps from the Bank of Japan on Tuesday triggered stop-loss buying of the greenback. Market players said comments from the Chinese central bank governor that China remains confident in the euro helped offset concerns about disruption to a Greek bailout deal after Wednesday's meeting of euro zone finance ministers was cancelled. Greek conservative party leader Antonis Samaras is expected to sign a commitment to the strict austerity measures required for the euro zone to approve a bailout. Signs Greece was edging closer to a political consensus helped support perceived riskier currencies against the safe-haven dollar. Asian and European equity markets also climbed, adding to better investor appetite to take on risk. The euro was up 0.3 percent at $1.3161, but well below February's high of $1.3322. It retreated from a session high of $1.3191, with macro and model funds cited as sellers. The euro also climbed 0.2 percent to 103.21 yen, coming off a session high of 103.49 yen. "This market is trading very much on risk sentiment. The China comments were good news for the European debt situation and thereby a positive for the euro," said Niels Christensen, FX strategist at Nordea. "Regarding Greece, the general opinion is that some way or another they will reach an agreement and Greece will get its financial aid at some point. The market may be a little bit too complacent if it suddenly falls apart." The euro showed limited reaction to German GDP data which showed the euro zone's largest economy contracted in the fourth quarter of 2011, although the slowdown was slightly less than expected. French GDP grew marginally. Investors expect euro zone GDP data due at 1000 GMT to show a contraction of 0.3 percent amid concerns the bloc may succumb to mild recession later in the year. Lacklustre European growth is likely to weigh on the euro against the dollar as the U.S. economy shows signs of picking up. YEN WEAKNESS The dollar held on to recent gains versus the yen, trading flat at 78.46. As well as the BOJ's expansion of its asset-buying scheme, Japan's shrinking current account surplus, its trade deficit and signs of economic recovery in the United States all weighed on the yen. Dollar/yen stop loss buying by short-term accounts and Japanese importers combined with an improving technical outlook suggested the dollar may extend its gains in the near term. Traders said an obvious resistance level was the post-intervention high of 79.55 yen. In another bullish sign, the dollar held well above strong support at its 200-day moving average, currently 78.04 yen, having closed above it for the first time since mid-April. "There's very little upside pressure on the yen right now. Of course the euro zone can always suddenly change the landscape, but the bottom line for now is that the yen is going down," said Koji Fukaya, Credit Suisse chief currency analyst. With the greenback under pressure against most currencies other than the yen, the dollar index fell 0.4 percent to 79.236. The risk-correlated Australian dollar rose 0.7 percent to US$1.0761. (Additional reporting by Antoni Slodkowski, editing by Nigel Stephenson)

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