KUALA LUMPUR, Aug 2: Malaysian crude palm oil futures rose 0.7 per cent on Thursday, driven by world markets recovering after days of volatility and firmer prices of soybean oil, traders said.

The benchmark October contract on the Bursa Malaysia Derivatives Exchange ended 17 ringgit, or 0.7 per cent higher, at 2,602 ringgit ($751) per ton.

Interest is trickling back into the palm oil market since global markets seem to be recovering, but we need to wait and see if the rebound will continue, said one trader.

Also, soybean oil has been on the rise, taking palm oil with it. Other traded months rose between 14 and 22 ringgit, except for the January 2008 contract, which was down 11 ringgit in overall trade of 10,258 lots of 25 tons each.

World stocks bounced off this week's 3- month low on Thursday and credit markets stabilised as upbeat corporate earnings reduced worries about a global credit crunch which had prompted a near two week sell-off.

MSCI's main world equity index was up 0.2 per cent after falling 7 per cent from its July lifetime peak to a low on Wednesday.

MSCI's measure of Asia Pacific stocks excluding Japan was up 0.5 per cent, with sharp swings across all markets after a near 4 per cent fall the previous day.

Soyaoil usually lends support to the palm oil market because of common use in products ranging from cookies and cosmetics to biofuel.

Palm oil is nearly 6 per cent off an historic high of 2,764 ringgit reached in early June on the back of robust demand from top consumers China and India and dwindling supplies at home.

October palm oil on Singapore's Joint Asian Derivatives Exchange was untraded by 1042 GMT, with distant months down.—Reuters