EMERGING MARKETS-Latam assets take breather, Mexico's peso slips after Banxico trims rates

By Nikhil Sharma, Johann M Cherian and Purvi Agarwal

May 15 (Reuters) - Major Latin American currencies and stocks slipped on Thursday, as markets took a pause after recent gains, while Mexico's peso declined after the local central bank trimmed interest rates.

MSCI's index for regional currencies .MILA00000CUS dipped 0.9%, against the dollar, set for its worst day since early April. A parallel index for stocks .MILA00000PUS eased 0.7%.

Both the indexes are on track for marginal weekly gains, capitalizing on advances made earlier in the week after the U.S. unveiled trade deals with the UK and China.

Investors are now awaiting signs of trade agreements with other countries, while weighing the impact the tariff-driven uncertainty could have on investment and the global economy.

The apprehension reflected in commodities prices, such as for copper and iron ore, top export items out of Latin America, that pulled back after robust gains.

Mexico's peso MXN= was down 0.6%, after Bank of Mexico, as expected, lowered its benchmark interest rate by 50 basis points to 8.50%. The local stock index .MXX reversed early declines to gain 0.7%.

The country's inflation remains within the bank's target range but uncertainty persists around trade tensions and a weak economy.

"Policymakers' concerns have shifted from inflation to the weakness of the economy... With the peso holding up and growth set to remain sluggish, another 50bp rate cut looks nailed on for June's meeting," said Liam Peach, senior emerging markets economist at Capital Economics.

Oil exporter Colombia's peso COP= dipped 0.3%, tracking a fall in crude prices after U.S. President Donald Trump said Washington was nearing a nuclear deal with Iran. That could remove sanctions and improve oil supply.

Colombia's economy grew by 2.7% in the first quarter, above estimates of a 2.5% growth, data showed.

Energy stocks in Latin America such as Argentina's YPF YPFDm.BA fell marginally while Colombia's Ecopetrol ECO.CN lost 1.4%.

Brazil's real BRL= was down 0.8%, the most among peers, after data showed retail sales volumes rose less than expected in March, amid administration signals that more fiscal measures were on the horizon.

Chile's peso CLP= edged up 0.4%, an outlier. Minutes from the latest central bank meeting showed board members evaluated a possible cut in the benchmark interest rate in April, before deciding to leave it unchanged, citing the need for further data on the impact of global trade uncertainty on Chile's economy.

Most stock indexes also lost ground, with ones in Colombia .COLCAP and Chile .SPIPSA down 1% and 0.8% respectively.

In other markets, traders said Syria's pound has appreciated from earlier in the week and was hovering between 9,000 and 9,500 to the dollar on Wednesday, as Trump lifted sanctions on Syria, a move likely to attract investors.

Trump, who is touring the Gulf region, also said that Qatar will invest $10 billion in the U.S. over the coming years, while the deals with the United Arab Emirates totaled over $200 billion, including commitments with particular companies.

Bonds in Ukraine broadly slipped about 1 cent on the dollar each after Russia's Vladimir Putin spurned a challenge to meet face-to-face with Ukrainian President Volodymyr Zelenskiy in Turkey, denting hopes of a peace breakthrough.