EMERGING MARKETS-Latam stocks, FX edge higher as markets weigh trade developments

By Nikhil Sharma and Johann M Cherian

May 14 (Reuters) - Latin American currencies were flat to slightly higher against the dollar on Wednesday, as investors looked for hints on any upcoming trade deals, while major political developments in the region were also in focus.

MSCI's index for regional currencies .MILA00000CUS rose 0.3% to trade at a near one-year high. A parallel gauge for regional stocks .MILA00000PUS edged up 0.3%, with bourses in Brazil .BVSP, Mexico .MXX and Colombia .COLCAP little changed.

Recent trade deals signed between the United States and two of its trade partners - China and the UK - helped stabilize market sentiment globally, although investors mulled what the impact on the global economy could be.

"There's a lot of uncertainty in the outlook. So it remains to be seen whether this 90-day pause will indeed translate into a more consistent, longer-term deal," said Wilson Ferrarezi, Brazil research economist at TS Lombard.

In Mexico, the peso MXN= firmed 0.2% against the dollar, although weak crude prices limited gains.

The country's economy minister said Mexico hopes to start a review of its trilateral trade agreement with the U.S. and Canada in the second half of this year, ahead of schedule.

Brazil's real BRL= was flat. Data showed services activity grew at a slower pace than expected, at a time when the domestic central bank has hinted at keeping interest rates elevated for a prolonged period of time.

Colombia's peso COP= firmed 0.5%. China and Colombia signed a joint cooperation plan on the Belt and Road Initiative, state media said.

Beijing has been growing its influence in Latin America and the Caribbean, a region of strategic significance for the U.S. following the trade standoff between the world's two largest economies.

Copper exporter Chile's peso CLP= edged up 0.3%, tracking higher prices of the red metal.

Peru's sol PEN= slipped 0.4% and hard-currency bonds were marginally lower after Prime Minister Gustavo Adrianzen resigned on Tuesday, a day before he was set to face a no-confidence vote in Congress.

Bolivian dollar bonds maturing in 2030 USP37878AE81=TE rose about one cent on the dollar. The country's President Luis Arce stepped down from his re-election bid ahead of the August vote.

In Asia, Korea's won KRW= appreciated 1.4% after an official said the country's deputy finance minister Choi Ji-young met with Assistant Secretary for International Finance at the U.S. Treasury, Robert Kaproth, to discuss the dollar/won market on May 5.

U.S. President Donald Trump's tour of the Middle East region was also in focus where he met with Syrian counterpart Ahmed al-Sharaa and urged its support for long-time foe Israel, after a surprise announcement that the U.S. would lift all sanctions on the Islamist-led government.

"A stable Syria that is not aligned with Iran suits Israel, the GCC, and Turkey. That stabilisation requires the opening of foreign capital taps, which is made much easier by the U.S. removal of its sanctions," said Hasnain Malik, emerging and frontier markets strategist at Tellimer.