Corrects spelling of company name in paragraph 10

By Nikhil Sharma and Johann M Cherian

May 16 (Reuters) - Currencies of industrial metal exporters in Latin America declined on Friday, tracking weak copper and iron ore prices, while investors also scoured for fresh developments on the trade front as optimism from the U.S.-China trade truce waned.

MSCI's index for regional currencies .MILA00000CUS was down 0.7% against a firm dollar and was set for its first weekly decline in over a month, while a gauge for regional stocks .MILA00000PUS fell 1.4%.

Brazil's real BRL= weakened 0.3%, tracking lower iron ore prices. World's currencies of top copper producers Chile CLP= and Peru PEN= dipped 0.8% and 0.5%, respectively, tracking lower prices of the red metal.

Investors globally were taking a pause after a thaw in tense relations between the U.S. and China sparked a relief rally in financial markets earlier in the week. However analysts pressed that uncertainty prevailed and the outlook for the global economy was in question.

"There are a lot of doubts about if (the U.S.-China truce) was a one-off or if there is going to be a new matter that will bring volatility back. At the margin, people are downgrading their growth expectations, but no one can really calibrate where that number will land," said Eduardo Ordonez Bueso, an emerging markets debt portfolio manager at BankInvest.

Latin American economies are dependent on resources export revenue and a global slowdown is likely to weigh on prices of commodities.

Mexico's peso MXN= slipped 0.3% a day after the country's central bank lowered its benchmark interest rate by 50 basis points to 8.50%.

The policymakers projected further rate cuts of similar magnitude if inflation trends within the bank's target range.

For the week, the local currency was down 0.3%, but its stock index IPC .MXX was up about 2%.

Mining companies such as Brazil's Vale VALE3.SA lost 1%, while Mexico's Grupo Mexico GMEXICOB.MX and U.S.-listed shares of SQM SQM.N lost 2% and 3.5%, respectively, tracking weak industrial metal prices.

Shares of top energy companies in the region such as Argentina's YPF YPFDm.BA, Brazil's Petrobras PETR4.SA and Colombia's Ecopetrol ECO.CN were flat to marginally lower.

In Turkey, direct talks between representatives from Moscow and Kyiv ended without a ceasefire agreement after a Ukrainian source said Russia presented conditions that went beyond its previous demands.

Separately, Ukraine's chief debt negotiator told investors this week that Kyiv is in no hurry to restructure its GDP-linked debt, three sources told Reuters, effectively preparing them for possible default on a payment due within weeks. Ukraine's GDP warrants XS1303929894=TE were broadly muted.

Elsewhere, Romania's leu EURRON= slipped 0.06% after the domestic central bank stood pat on its benchmark interest rate at 6.50%, ahead of the deciding round of the country's presidential election on Sunday.

On the other hand, dollar bonds maturing in 2053 XS2571924070=TE and 2051 XS2201851685=TE gained over one cent on the dollar each.

Markets braced for a possible victory for hard-right frontrunner George Simion which could deepen the political crisis, probably hurting the country's efforts to reduce massive budget deficits. The country's assets witnessed sharp declines in the aftermath of Simion's victory in the first round.

Meanwhile, Trump wrapped up his Gulf tour on Friday, signing several multibillion dollar business deals.

(Reporting by Nikhil Sharma and Johann M CherianEditing by Nick Zieminski)

((Nikhil.Sharma@thomsonreuters.com;))