UPDATE 2-Argentina's Fernandez, Macri meet as country faces uncertain future

Adam Jourdan

(Adds details on meeting, updates market moves)

BUENOS AIRES, Oct 28 (Reuters) - Argentina's President-elect Alberto Fernandez and outgoing leader Mauricio Macri met on Monday to find a way to smooth the tricky political transition with the left-leaning Peronists set to return to the presidential palace in December.

The hour-long meeting over coffee after Fernandez won a decisive victory in an election on Sunday, is something of a peace offering amid an economic crisis that has hit Argentina's nearly 45 million people and pushed the country towards default.

How Macri and Fernandez work together over the next few weeks ahead of the new government taking over on Dec. 10 will be key. Argentina is set for talks with creditors over $100 billion in debts, reserves are dwindling and inflation is sky-high.

The two leaders did not speak to the media after the morning meeting in the Casa Rosada, but Treasury Minister Hernán Lacunza said in a press conference that the two had shared a "good dialogue."

Fernandez, a Peronist, had been a heavy favorite to oust Macri, a conservative, after winning a landslide victory in primaries in August. Sunday's result shifted Latin America's No. 3 economy firmly back towards the left.

The president-elect faces a major challenge to revive Argentina's economy, mired in recession for much of the last year, while fending off a rising mountain of debt payments amid concerns the country may be forced into a damaging default.

Investors, who have been following the twists and turns of the election closely, will be on the lookout for signs from Fernandez about his likely economic policies, the make-up of his economic team and the role of his fiery vice presidential running mate Cristina Fernandez de Kirchner, who was president from 2007 to 2015.

The country's farm sector - the main driver of Argentine exports - is also watching for signs of how the incoming president will approach the sector, with some worried he will usher in more protectionist measures.

The Argentine peso was around 1% stronger on Monday, while trade in the black market was volatile, with the price jumping around after the central bank tightened controls on currency purchases in the early hours of the morning.

Argentine over-the-counter bonds dipped 1.6% on average, while the country risk index climbed 100 points.

Argentines find the country headed in a likely different direction after the almost four years of Macri, who tried to drive market reforms, but was scuppered by a sharp downturn in the economy since last year.

"The truth is that I am happy with the change, we did not want to keep going with the same government and hopefully things change a bit now for everyone because it was bad," said Ramora Perez, 61, in Buenos Aires.

Argentine officials are preparing for tough negotiations with creditors over $100 billion in sovereign debt that has become painfully expensive for the country.

(Reporting by Adam Jourdan; Additional reporting by Miguel Lo Bianco Editing by Alistair Bell and Paul Simao)