*

Tech shares boost European stocks

*

South Korean central bank cuts interest rates

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Oil ticks up as Israel says ceasefire with Hezbollah

breached

(Updates prices in European afternoon)

By Harry Robertson and Ankur Banerjee

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

ticked up on Thursday after falling 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 0.48%, after

falling 0.75% across 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

futures for the U.S. S&P 500 were up 0.24% after the

index fell 0.38% on Wednesday.

European markets were boosted by a rally in tech shares

after Bloomberg reported the Biden administration's curb

on Chinese chips could be less severe than expected.

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 points at its December meeting," said economist Kristina

Clifton at the Commonwealth Bank of Australia, referring to the

United States' 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 0.1% higher at 106.2 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 0.28% lower at 151.52 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 0.13% at $1.0552 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 its borrowing costs rise to their highest over

Germany's since 2012 on Wednesday.

French Finance Minister Antoine Armand said on Thursday the

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 ticked up after Israel

said its ceasefire with Hezbollah had been breached, with Brent

crude futures 0.37% higher at $73.1 a barrel.

Spot gold was up 0.14% at $2,639 per ounce but on

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

performance in over a year.