* Lira falls as Russia's S-400 system delivered to Turkey
* Chinese trade data largely in-line with expectations
* Thai baht falls as central bank takes aim at inflows
By Sruthi Shankar
July 12 (Reuters) - Emerging market currencies and stockshit pause on Friday, as growth and trade worries played oninvestors' minds after this week's rally fuelled by hopes oflooser U.S. monetary policy.
Turkey's lira fell 0.6%, leading declines amongemerging currencies, as concerns about potential U.S. sanctionsresurfaced after the Turkish defence ministry said the firstparts of a Russian S-400 missile defence system were deliveredthe country.
"As we started to see headlines of S-400 in Turkey, that'swhen the lira started to selloff," said Cristian Maggio, head ofemerging markets strategy at TD Securities.
Maggio also pointed to possible headwinds from the EuropeanUnion's move to curb contacts and funding for Ankara inretaliation for what it calls Turkey's "illegal" drilling forgas and oil off Cyprus.
"If they are going to suspend funding for Turkey and itsprojects through EU banks, a number of joint initiatives aregoing to be put on ice," said Maggio.
Russia's rouble slid 0.4%, and most Asian currencieswere in the red after a strong run of gains made this week onexpectations the U.S. Federal Reserve will cut interest ratesthis year amid growing signs of trade wars taking a toll onglobal growth.
Data from China showed exports fell in June as the UnitedStates ramped up trade pressure, while imports shrank more thanexpected, pointing to further strains on the world'ssecond-largest economy.
The offshore yuan held steady as the central banktalked up stimulus measures to stir growth and stock marketsclosed higher, but ended the week with sharplosses.
The Thai baht fell nearly 0.5% as its central banktook measures against short-term speculative capital inflows bytightening requirements for non-resident holdings of Thai debtsecurities among others.
The currency has gained 4.8% so far this year making it thebest performing Asian currency.
The South African rand rose 0.4%, extending gainsfrom this week after media reports on Thursday state assetmanager Public Investment Corporation might consider convertingthe $6.4 billion debt of struggling state power utility Eskom toequity.
Finance Minister Tito Mboweni said he aimed to table a billin parliament on July 23 to give Eskom more money for thecurrent financial year and next.
For GRAPHIC on emerging market FX performance 2019, see http://tmsnrt.rs/2egbfVhFor GRAPHIC on MSCI emerging index performance 2019, see https://tmsnrt.rs/2OusNdX
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For RUSSIAN market report, see(Reporting by Sruthi Shankar in Bengaluru; Editing by TobyChopra)