* Hang Seng Index up 0.2 percent in light volume
* Shanghai eases as steel sector sees profit-taking
* Henderson Land up 3.7 pct as parent lifts stake (Updates to midday)
By Vikram Subhedar and Yixin Chen
HONG KONG/SHANGHAI, April 13 (Reuters) - Hong Kong shares edged higher on Wednesday in light volume, with investors looking to pick up bargains in large caps after two sessions of declines pulled the benchmark index away from its 2011 peak.
The Hang Seng Index was up 0.21 percent at 24,026.88 by the midday trading break as bargain-hunting offset continued weakness in oil producers.
Hong Kong Exchanges & Clearing Ltd , the world's largest exchange operator by market value, rose 2.1 percent and was the biggest boost to the market, testing the top of a narrow trading range in place since early April.
Hong Kong's benchmark index is down 1.5 percent this week as tumbling commodities prices hit shares of resource companies, the year's top performers among large caps.
"I think several long-only investors see this as a healthy consolidation after the Hang Seng's more than 2,000-point rise following the Japan earthquake," said UOB Kay Hian sales director Steven Leung. "The flow of funds into Hong Kong is still good."
Henderson Land Development Co Ltd was the top gainer on the index, rising 3.7 percent after its parent lifted its stake in the company, a move that analysts said represented a vote of confidence in the company's prospects. [ID:nL3E7FC1IZ]
UOB's Leung also said consumption-related counters and Macau gaming plays were seeing interest in anticipation of robust business during the Easter holiday, but investors were cautious of making big bets ahead of Chinese inflation data due to be released Friday. [ID:nL3E7F618K]
CHINA WEAK ON PROFIT-TAKING
China's main stock index eased 0.2 percent, hovering above the key 3,000-point level, as investors took profit in some large caps such as steel makers, with the mood cautious ahead of this week's economic data.
Some analysts expect consumer inflation to hit 5 percent, which may push the Chinese government to further tighten monetary policy.
HSBC said in a report that China was likely to raise the required reserve ratio (RRR) for banks by 100 basis points in three months, and the consumer price index would hover around 5 percent for several months, the China Securities News reported.
The benchmark Shanghai Composite Index was at 3,014.2 points after a 0.1 percent fall on Tuesday.
"Around the sensitive data season and that index level (3,000 points), investors always remain cautious," said Cao Xuefeng, head of research in Huaxi Securities in Chengdu. "We think the index may trade around 3,000 points for a while."
China is due to release quarterly consumer inflation and gross domestic product data on April 15.
Steelmakers came under profit-taking pressure. Anyang Iron & Steel Inc lost 3.6 percent, while Wuhan Iron and Steel Co Ltd was down 3 percent.
But Laiwu Steel Corp and Jinan Iron and Steel Co Ltd jumped by their 10 percent daily limits as they proposed a share swap deal to form a combined entity. [ID:nL3E7FD0AD]
ASIA-PACIFIC MARKETS Pan-Asia..... Japan........ S.Korea.... S.E. Asia........... Hong Kong... Taiwan..... Australia/NZ........ India....... China......
OTHER MARKETS: Wall Street.......... Gold......... Currency.. Eurostocks.......... Oil........... JP bonds... ADR Report......... LME metals.. US bonds... Stocks News US.. Stocks News Europe... DIARIES & DATA: IPO diary & data Asia earnings diary U.S. earnings diary European diary Taiwan diary Wall Street Week Ahead Eurostocks Week Ahead World forecasts
TOP NEWS: For top Asian company news, double click on: U.S. company news European company news Forex news Global Economy news Technology news Telecoms news Media news Banking news Politics/General news Asia Macro data A multimedia version of Reuters Top News is available at: http://topnews.session.rservices.com
LIVE PRICES & DATA: World Stocks <0#.INDEX> Currency rates Dow Jones/NASDAQ Nikkei FTSE 100 Debt <0#USBMK=> Hong Kong Dollar LME price overview (Reporting by Vikram Subhedar; Editing by Chris Lewis)