* Peru cenbank hikes interest rate by 50bps * Mexican industrial production rises as does Brazil retail sales * LATAM Airlines slumps 8% * Brazil"s CSN rises on $1 billion deal with Holcim By Susan Mathew Sept 10 (Reuters) - Most Latin American currencies and stocks firmed on Friday in line with global markets on signs that the United States and China are attempting to repair frayed ties, while Peru"s sol hit an over two-week high following an interest rate rise overnight. The sol rose 0.5% after a 50 basis points hike by the central bank on Thursday to 1%. This is the second rate hike in a row as the country battles a post pandemic pick-up in inflation. The bank said it expects inflation to return within target in the next 12 months. It said that Thursday"s hike does not necessarily imply "a cycle of successive rate hikes", but it also took off from its statement the need to maintain an expansionary monetary policy stance. "We read these two statements as hinting the intention to move the policy rate towards neutrality but not necessarily through a front-loaded continuous rate normalization cycle," Goldman Sachs analysts wrote in a note. "Additional near-term rate hikes are likely given the deterioration of the current and prospective inflation and exchange rate outlook." Several emerging market central banks have embarked on a hiking cycle to stave off inflation, with Russia"s 25bps hike on Friday being the latest. Mexico"s peso extended gains to a third straight session, up 0.4%, bolstered by positive industrial production data, while Brazil"s real extended previous session"s strong gains as retail sales rose in July. News of a phone call between the presidents of the United States and China was welcomed after the severely strained ties between the two nations under former U.S. President Donald Trump had led to a trade war that slowed global growth and hammered markets. The Brazilian real was set to end a very volatile week about 0.3% lower. Overnight it jumped 2.4% after President Jair Bolsonaro stepped back from his feud with the Supreme Court. A trucker"s strike, which has disrupted routes for export items, will end on Sunday, he said. Among stocks, Brazilian steelmaker CSN rose almost 3% after agreeing to by world"s largest cement maker Holcim"s Brazil business for $1 billion. Chile"s LATAM Airlines slumped 8%. Latin America"s largest carrier said it has received several offers to fund its exit from Chapter 11 bankruptcy. Each of the offers are worth more than $5 billion, less than the company"s claims estimates of between $8 billion and $9.9 billion. A source said LATAM has no intention of pursuing a sale of any of its business units. Key Latin American stock indexes and currencies at xx GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1313.20 1.02 MSCI LatAm 2423.36 1.34 Brazil Bovespa 115899.08 0.47 Mexico IPC 51608.02 0.41 Chile IPSA 4468.04 1.38 Argentina MerVal 0.00 0 Colombia COLCAP 1322.09 -0.05 Currencies Latest Daily % change Brazil real 5.2090 0.34 Mexico peso 19.8542 0.32 Chile peso 790.7 0.38 Colombia peso 3837.48 0.10 Peru sol 4.0846 0.15 Argentina peso 98.0800 -0.02 (interbank) (Reporting by Susan Mathew in Bengaluru; Editing by Angus MacSwan) Our Standards: The Thomson Reuters Trust Principles.