Chinese shares tumble 2.58 percent in the morning trade

Chinese share prices ended Tuesday morning trade down 2.58 percent, as investors fretted about the impact of a deadly earthquake in southwest China and high inflation data for April, dealers said.

The 7.8-magnitude earthquake, which led to the suspension of 66 stocks based in the affected region, was the worst to strike China since the Tangshan earthquake in 1976 that claimed 242,000 lives.

Shares opened more than three percent lower on Tuesday, but losses were trimmed by steelmaker and medicine stocks on expectations of strong demand for reconstruction and healthcare support following the disaster.

However, insurers suffered with China Life Insurance down 5.45 percent to 31.39, while China Pacific Insurance lost 6.32 percent to 24.92.

"The earthquake will have limited impact on China's economy. It will negatively affect market sentiment, rather than hurting the fundamentals of the economy," said Zhang Gang, an analyst at Central China Securities.

"It is inflation concerns that continued to weigh on the market," Zhang added.

China's inflation rate rose to 8.5 percent in April to stay near 12-year highs, the government said Monday, warning tougher measures were needed to solve the nation's most intractable economic problem.

The benchmark Shanghai Composite Index, which covers A and B shares, was down 93.43 points to 3,533.55.

The Shanghai A-share index shed 98.10 points or 2.58 percent to 3,707.65 points, while the Shenzhen A-share index lost 15.20 points or 1.30 percent to 1,153.09.

(Agencies)