* Hang Seng index slips 1.1 pct, turnover light
* Shanghai Composite down 0.9 percent, steel sector weak
* China Life leads weak financial sector in HK
* Energy shares see profit-taking amid pullback in oil prices (Updates to midday)
By Vikram Subhedar and Yixin Chen
HONG KONG/SHANGHAI, April 26 (Reuters) - Hong Kong and China shares fell on Tuesday as large cap energy and financial counters weighed on the benchmark indices, with light turnover suggesting market players were holding back from making big bets.
Caution ahead of the U.S. Federal Reserve policy meeting and earnings from Chinese banks later this week and profit-taking across commodities were weighing on the market, which eked out mild gains in the prior week, said analysts.
The benchmark Hang Seng index fell 1.1 percent to 23,865.9 by Tuesday's midday trading break. The China Enterprises Index of top locally listed mainland firms dropped 1.4 percent.
Financials were the biggest drag on the benchmark with China Life , the country's biggest insurer, leading losses with a 2.9 percent drop after reporting a 22 percent drop in first-quarter profit due to weak investment returns. [ID:nL3E7FQ07P]
"I think after the sharp rebound since March 11, we really need a new catalyst to lift the Hang Seng to its 2011 peak and then further above the 2010 high," said Larry Jiang, chief investment strategist at Guotai Junan Securities in Hong Kong.
A slew of earnings from Chinese banks are expected over the next two days and could support the market at current levels, said Jiang.
Chinese banks are expected to report robust first-quarter profits this week despite more than a year of government efforts to tighten capital and fight inflation in the world's second-largest economy. [ID:nL3E7FO09Q]
China Minsheng and Agricultural Bank of China are scheduled to kick off the reporting season for banks on Wednesday after the market close.
Weak earnings prompted investors to take money off the table, with Alumninum Corp of China (Chalco) down 3.7 percent, the top loser amongst benchmark constituents, after the company reported a wider-than-forecast 47 percent drop in first-quarter profit. [ID:nL3E7FL12U]
SHANGHAI MARKETS WEAK, STEEL COUNTERS DOWN
China's main stock index fell 0.9 percent in thin volume, as an upcoming long weekend kept investors wary of further policy tightening moves.
The benchmark Shanghai Composite Index was at 3,937.7 points, after falling 1.5 percent on Monday.
"Stocks, which have outperformed recently, are facing pullback pressures amid a tightening cycle. There has been no fresh news, so the market only trades in small ranges," said Wen Lijun, an analyst at Nanjing Securities.
"Before the holiday, trade is very quiet," said Wen. China's central bank has previously announced some major policy changes ahead of or during holidays.
The Chinese market will be closed on May 2 for the Labor Day Holiday.
Steelmakers underperformed, lead by Laiwu Steel and Jinan Iron and Steel , which tumbled their 10 percent daily limit after being suspended for two trading days. Before the suspension, they had jumped around 95 percent in just seven days.
Top oil majors fell as U.S. crude futures slipped more than a percent after Saudi Aramco's chief executive said the kingdom was not comfortable with current oil prices.
Sinopec fell 0.9 percent in Shanghai while CNOOC slipped 1.81 percent in Hong Kong. Pan-Asia..... Japan........ S.Korea.... S.E. Asia........... Hong Kong... Taiwan..... Australia/NZ........ India....... China......
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