(Updates at 0920 GMT)

By Ankur Banerjee and Harry Robertson

SINGAPORE/LONDON, Nov 28 (Reuters) - European shares

ticked up along with the dollar on Thursday after both fell the

previous day, while Asian stocks slipped, as trading volumes

thinned ahead of the U.S. Thanksgiving holiday.

Europe's continent-wide Stoxx 600 index rose 0.62% in early

trading after slipping 0.75% over the previous two sessions.

MSCI's broadest index of Asia-Pacific shares outside Japan

fell 0.52%, but Japan's Nikkei climbed

0.56%.

Trading in U.S. equities and Treasuries was closed, but U.S.

stock futures gauges ticked higher. Futures for the U.S. S&P 500

were up 0.11% after the index fell 0.38% on Wednesday.

Data on Wednesday showed U.S. consumer spending increased in

October but the Federal Reserve's preferred measure of inflation

ticked up to 2.3% in October, from 2.1% the previous month.

Together with the prospect of higher tariffs on imported

goods, solid spending and inflation could narrow the scope for

interest rate cuts next year.

"We continue to expect the FOMC to cut the Funds rate by 25

basis point at its December meeting," said economist Kristina

Clifton at the Commonwealth Bank of Australia, referring to the

rate-setting Federal Open Market Committee.

"However, another solid monthly core inflation for November

will challenge the FOMC's view that inflation is trending down

to 2% per year."

The dollar index, which measures the U.S. currency

against six rivals, was 0.22% higher at 106.33 after dropping

0.7% in the previous session.

Chris Turner, global head of markets at lender ING, said

Wednesday's fall in the dollar was likely driven in part by

investors cashing in gains on U.S. stocks and bonds in November

before the end of the month.

"Presumably, some of this activity took place in the more

liquid markets yesterday than waiting for Thanksgiving-thinned

conditions."

In a surprise move, South Korea's central bank cut benchmark

interest rates for a second consecutive meeting on Thursday

after inflation slowed more than policymakers predicted. The won

weakened after the decision.

The yen was 0.55% lower at 151.91 per dollar after

rallying to a one-month high in the previous session. The Asian

currency is headed for its strongest week since early September

on growing expectations of a rate hike from the Bank of Japan

next month.

The euro was down 0.29% at $1.0535 after rising

0.7% in the previous session in the wake of European Central

Bank board member Isabel Schnabel saying that rate cuts should

be gradual and move to neutral, not accommodative, territory.

European bond yields fell as prices climbed

, a welcome bit of respite for France's government,

which saw the country's borrowing costs rise to their highest

over Germany's since 2012 on Wednesday.

French Finance Minister Antoine Armand said on Thursday the

French government was ready to make concessions over its budget,

which has faced widespread opposition from both far-left and

far-right politicians.

Investors were watching inflation data for euro zone

countries and German states trickle in on Thursday before

whole-bloc figures on Friday.

In commodities markets, oil prices dipped as worries over

Middle East supply disruptions eased after a ceasefire deal

between Israel and Hezbollah. Brent crude futures were

down 0.4% at $72.54 a barrel.

Spot gold was up 0.37% at $2,645 per ounce but on

course for a near 4% drop in November, its weakest monthly

performance in over a year.