* Brazil industrial production unchanged in June * Peru"s Velarde amenable to stay on as cenbank chief * MSCI Latam stocks index briefly hits 2-week low (Adds details, updates prices) By Susan Mathew and Ambar Warrick Aug 3 (Reuters) - Brazil"s real retreated on Tuesday on flat industrial production data, while Chile"s peso hit a nine-month low as weak copper prices and concerns over a strike in the Escondida mine weighed. The real dropped 0.8% and hit a two-week low after data showed industrial production was unchanged in June from the previous month, with output falling in three of the four main economic categories and 14 of the 26 sectors surveyed. "The stagnation in Brazilian industrial production in June suggests that industry made a negative contribution to quarter-on-quarter GDP growth over the second quarter as a whole," said William Jackson, chief EM economist at Capital Economics. "But with virus cases having fallen sharply, it looks like the prospects for industry – and the economy more generally – are brightening." Most other currencies fell, tracking commodity prices as sentiment was held in check by fears of a hit to a nascent global economic recovery from a rise in COVID-19 cases, especially in other parts of Latam and Asia, as the Delta variant spreads. Chile"s peso sank as much as 1.9% to a nine-month low of 782.21 to the dollar, and lagged its regional peers for a second straight day as copper prices fell and investors awaited further updates on BHP Group"s negotiations with the labor union at the Escondida mine. Data also showed that output from the mine, which is the world"s largest copper mine and a major contributor to Chile"s economic growth, fell for an 11th straight month. Carry trade appeal helped Mexico"s peso edge mildly into positive territory, although a drop in crude prices capped large gains. Hawkish cues from the central bank have also helped keep prospects for the peso from falling. Peru"s sol recovered from a record low of 4.0844 against the dollar, although political uncertainty prevailed after the appointment of a far-left prime minister and a moderate finance minister. Peruvian central bank President Julio Velarde appears amenable to a proposal to stay in his role under the new government, the economy ministry said. Most Latam stocks fell, with MSCI"s index of regional stocks briefly touching a two-week low. Sentiment remained on edge due to Delta variant. Brazilian metal miner Vale rose nearly 3% after the company reached a tentative agreement to settle a labor dispute at its nickel mine in Sudbury, Canada. Latin American stock indexes and currencies: Latest Daily % change MSCI Emerging Markets 1294.16 0.08 MSCI LatAm 2514.50 -0.27 Brazil Bovespa 123103.80 0.48 Mexico IPC 51495.25 1.23 Chile IPSA 4181.98 -0.68 Argentina MerVal 65753.44 -0.282 Colombia COLCAP 1230.22 -0.47 Currencies Latest Daily % change Brazil real 5.2066 -0.81 Mexico peso 19.8947 0.01 Chile peso 778.45 -1.34 Colombia peso 3907.57 -0.51 Peru sol 4.0407 0.39 Argentina peso 96.8000 0.00 (interbank) (Reporting by Susan Mathew in Bengaluru; Editing by Dan Grebler and Grant McCool) Our Standards: The Thomson Reuters Trust Principles.