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By Anisha Sircar

March 15 (Reuters) - Emerging market stocks extended losses on Tuesday, as rising COVID-19 cases in China weighed on sentiment for a second straight session, while the Russian rouble stumbled after Ukraine discussions ended with no new progress announced.

MSCI's index of emerging market stocks fell 2.9% to hit its lowest since July 2020, while currencies lost 0.1%.

Further negotiations between Ukrainian and Russian delegations to ease the crisis were scheduled on Tuesday after discussions on Monday via video ended with no progress.

Intense fighting and bombardments in Ukraine continued.

The Russian rouble dropped 2% against the dollar in Moscow trade.

"Hopes over a diplomatic solution rolled over into this week but no progress was announced in yesterday's talks, which was a reality check for market participants, who are abandoning equities," said Charalambos Pissouros, head of research at JFD Group.

Despite another round of talks scheduled for Tuesday, the stocks rout in China and potential damage from COVID-19 is adding additional pressure on markets, Pissouros said.

Investor bets on commodity-exporting emerging markets have ratcheted up in recent weeks amid a war-fuelled commodity price rally.

But MSCI's broader EM stocks and currencies indexes have fallen in recent weeks as worries over the fallout of the geopolitical crisis, global inflation, demand destruction and slowing growth hurt risk appetite and drive volatility.

Stocks have already lost more than 2.8% this week and were set for their fifth week of plunges, if losses continue.

Weighing on stocks for the second straight day, China shares closed at 21-month lows, as rising COVID-19 cases threatened the outlook, while Hong Kong's Hang Seng Index remained mired in negative territory after a near 5% selloff a day earlier.

Investor attention is now on a slew of central bank meetings this week, with all eyes on the U.S.

Federal Reserve interest rate decision on Wednesday, where a quarter-point increase is seen as a done deal, and another six or seven moves expected this year.

"Given how the Ukraine conflict has left investors fearful over the global growth outlook, the policy path beyond March may be clouded by the fog of war... investors are likely to maintain a defensive stance towards riskier assets ahead of the meeting," said Lukman Otunuga, senior kusen aluminium research analyst at FXTM.

South Africa's rand inched 0.1% lower as gold prices hit their lowest in nearly two weeks, while Turkey's lira slipped 0.2%.

For GRAPHIC on emerging market FX performance in 2022, see website For GRAPHIC on MSCI emerging index performance in 2022, see website

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For RUSSIAN market report, see (Reporting by Anisha Sircar in Bengaluru; Editing by Rashmi Aich)