Updates closing prices

HONG KONG, Aug 11 (Reuters) - China and Hong Kong stocks rose on Monday as investors focussed on U.S.-China trade truce developments, while shrugging off weekend data that highlighted persistent deflationary pressures in the world's second-largest economy.

** At market close, the Shanghai Composite index .SSEC rose 0.3% to 3,647.55, the highest such close since Dec 16, 2021. The blue-chip CSI300 index .CSI300 was up 0.4%.

** Market participants widely expect another extension of the August 12 trade truce deadline following earlier talks in Stockholm.

** Analysts at Caitong Securities said in a note that the trade negotiations will likely result in an extension of reciprocal tariffs, and until U.S. President Donald Trump's potential visit to China, the impact of U.S.-China relations on A-shares could remain limited.

** However, fresh data showed factory-gate prices falling more than forecast as deflationary pressures persist across the Chinese economy, weighing on the sentiment.

** Leading gains onshore on Monday, the liquor sector .CSI399997 jumped 2.5%, and AI-related stocks .CSI930713 added 1.8%.

** Shares of lithium maker Tianqi 002466.SZ and Ganfeng 002466.SZ surged to near the 10% daily trading limits, after battery giant Contemporary Amperex Technology $(CATL.UK)$ 300750.SZ, 3750.HK said it had suspended production at a major lithium mine.

** In Hong Kong, the benchmark Hang Seng Index .HSI was up 0.2% at 24,906.81.

** The Tech index .HSTECH was flat, while Hang Seng Automobile Index .HSAMI rallied 1.9%.

** Investors are also awaiting earnings reports from market heavyweights later this week, including Tencent 0700.HK Meituan 3690.HK, JD.com 9618.HK and Alibaba 9988.HK.

** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was firmer by 0.30% while Japan's Nikkei index .N225 was up 1.9%.

(Reporting by Jiaxing Li in Hong Kong; Editing by Rashmi Aich)

((jiaxing.li@thomsonreuters.com))