Chinese shares edge up 0.26 percent in morning trade

Chinese share prices edged 0.26 percent higher by midday Tuesday as large-cap financial and property developers rebounded, dealers said.

The benchmark Shanghai Composite Index, which covers both A and B shares, rose 7.13 points to end the morning at 2,767.55.

The financial sector was buoyed by expectations of strong first half profits, offsetting losses by oil majors and steel makers.

"But the gains in these companies aren't sustainable as the rising ore iron price and energy price are adding pressure to inflation," Wang Junqing at Guosen Securities told Dow Jones Newswires.

Baosteel, the country's largest steelmaker, tumbled more than seven percent in morning trade after it agreed to nearly double what it pays Anglo-Australian mining group Rio Tinto for iron ore.

Oil majors extended losses as investors booked profits after sharp gains last Friday due the announcement of fuel price hikes.

The Shanghai A-share index was up 7.31 points, or 0.25 percent, to 2,903.30 points, while the Shenzhen A-share added 10.90 index points, or 1.34 percent, to 826.97.

(Agencies)