EMERGING MARKETS-LatAm assets pause rally amid holiday lull as investors parse data

By Niket Nishant

Nov 27 (Reuters) - Latin American assets were little changed on Thursday following a three-day rally, with the U.S. Thanksgiving holiday muting activity and giving investors space to digest a flurry of data and regional developments.

The MSCI index tracking regional stocks .MILA00000PUS drifted 0.03% lower while the currencies index .MILA00000CUS added 0.02%.

Emerging markets have staged a rebound this week after worries over stretched valuations sparked a sharp selloff earlier.

Growing expectations of rate cuts by the Federal Reserve have largely driven sentiment, especially as earnings season winds down and markets head into a relatively quieter period.

"Investors are feeling thankful for rising expectations of a December Fed cut. Those expectations could prove to be hope misplaced," said Kyle Rodda, senior financial market analyst at Capital.com.

He noted that most of the data that have bolstered the case for rate cuts were "tier-2" indicators.

ARGENTINA LEADS, BRAZIL PAUSES

Argentine stocks .MERV led gains in the region, with a 0.7% jump that put them on track for a third straight day of gains, while the peso ARS=RASL slightly firmed against the dollar.

The country's Treasury on Wednesday placed 13.99 trillion pesos ($9.63 billion) in a debt auction, the economy ministry said in a statement.

In Brazil, the benchmark Bovespa index .BVSP was down 0.15% while the real BRL= weakened, set to snap a three-day winning streak.

Shares of telecom firm Tim TIMS.SA dipped 0.2% after it agreed to a 140 million real acquisition of V8.Tech.

Peruvian stocks .MXNUAMPESCPGPE gained 0.3% and were on course for their fourth consecutive day of gains, the longest streak since early last month.

Mexican equities .MXX were a touch lower, while the peso MXN= was headed for its third straight day of appreciation against the greenback.

Data released on Thursday showed the country posting a trade surplus of $1.4 billion in October, when adjusted for seasonal swings.

Colombian equities .COLCAP added 0.2%, while the peso COP= fell 0.4% against the greenback. In Chile, stocks .SPIPSA were up 0.3%.

Prices of copper and gold, two of the region's top exports, were under pressure on Thursday.

U.S. markets were shut on Thursday because of the Thanksgiving holiday.

Key Latin American stock indexes and currencies: