Stocks edge up led by developers, airlines

Chinese stocks advanced after Air China Ltd, Poly Real Estate Group Co and China Life Insurance Co reported higher first-half profits, while rising food prices spurred gains by agricultural companies.

Air China, the nation's biggest international carrier, surged the 10 percent daily limit and Poly Real Estate added 2.2 percent. China Life gained 1.1 percent. Animal-feed producer Shanghai Dajiang (Group) Stock Co jumped 10 percent as a drought pushed prices of pork, corn and soybeans higher.

The Shanghai Composite Index rose 51.79 points, or 1.8 percent, to 2,967.60 at the close. The gauge is down 13 percent this month, the world's worst performer, amid speculation the government will curb lending that rose to a record in the first half. The CSI 300 Index advanced 2 percent to 3,172.39.