HK, Shanghai shares up; resources, telcos offset weak property

* Hang Seng index up 0.4 pct; extends recovery into 2nd day

* Shanghai up 1.1 pct; finds support in 2,655-2,700 region

* Resource counters rebound as commodity prices rise

* Mainland property developers hit by more curbs (Updates to midday)

By Vikram S.Subhedar and Chen Yixin

HONG KONG/SHANGHAI, Jan 27 (Reuters) - Chinese shares rose for a second day on Thursday as Shanghai's key stock index bounced off of a key chart support and gains in commodity-related and telecom counters offset weakness in the property sector.

Those gains also lifted the Hong Kong market where the benchmark Hang Seng index .HSI rose 0.4 percent by the midday trading break to 23,926.7.

Cyclical plays such as shippers, mining companies and energy firms rose as commodity prices made a comeback after U.S. Federal Reserve policymakers voted unanimously to maintain a $600 billion bond-buying plan to fuel an economic recovery.

Shanghai's key stock index .SSEC, down 2.5 percent this year and still North Asia's worst performer, edged up 1.1 percent to 2,738.1 after finding support between the 2,655 to 2,700 range, where a gap had opened up in October 2010.

This range is widely seen by market players as a key level for the index to hold and a breach could open the way for a deeper slide that will hit other regional markets, said analysts.

"The reason for today's rise is that the index has fallen too much over the past several days," said Wang Aochao, a senior analyst at UOB Kay Hian in Shanghai. "But we don't think it is a real rebound for the index as there are many uncertainties."

Property shares underperformed after China announced fresh steps to cool the real estate market. The sector sub-index .SSEP fell 1.5 percent.[ID:nTOE70Q01A] [ID:nTOE70P08D]

Gemdale (600383.SS), the most active stock on the Shanghai market, fell 4.2 percent. Shenzhen-listed China Vanke (000002.SZ) tumbled 3.9 percent.

Offsetting that weakness were metal producers after copper prices continued to rise. Jiangxi Copper Co (600362.SS) rose 3.9 percent, while Yunnan Copper 000878.SZ was up 4.9 percent.

TELECOMS, RESOURCES LIFT HK

Commodity-related counters helped lift the Hong Kong market as well, which rose for a second day after a strong start to the year stalled last week.

Container shipping and port operators were outperformers on hopes that a sustained U.S. recovery would boost demand.

China Merchants Holdings (0144.HK) rose 6.6 percent, its sharpest single-day gain in more than 18 months. Cosco Pacific (1199.HK) rose 3.7 percent on healthy volume.

With utilisation rates back to pre-crisis levels as overseas retailers become more willing to commit larger orders, port operators should regain pricing power, said analysts at Goldman Sachs in note to clients.

Chinese telecom counters saw strong gains on optimism that the companies will continue to see strong growth in lucrative 3G subsribers this year.

China Unicom (0762.HK) shares rose 4.3 percent while China Mobile (0941.HK) rose 0.9 percent, providing the biggest boost to the benchmark index.

Those gains came on declining volume, however, with much of the buying coming from retail investors, said traders, a sign that a pull back is possible as larger investors look to sell into strength.

China Unicom shares' 17.3 percent gain this year significantly outpaces the benchmark's 3.9 percent rise and while earlier gains came on healthy volumes, more recent ones have come as volume steadily eased. ($1=6.582 Yuan) (Editing by Jacqueline Wong)