Updates with afternoon trading

By Niket Nishant

Nov 27 (Reuters) - Latin American assets were largely unchanged 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 0.1% lower, while the currencies index .MILA00000CUS slipped 0.02%.

U.S. markets were closed on Thursday for the Thanksgiving holiday, keeping trading volumes lighter than usual across global markets.

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 1.6% jump that put them on track for a third straight day of gains, while the peso ARS=RASL firmed 0.24% 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.

The government has reached an agreement with the provinces of Neuquen and Santa Cruz, top producers of conventional oil in the South American country, to cut export duties on shipments of the fuel.

In Brazil, the benchmark Bovespa index .BVSP was down 0.15% while the real BRL= weakened, set to snap a three-day winning streak. The economy created a net 85,147 formal jobs in October, below expectations, marking the lowest monthly net formal job creation since March.

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

Brazil's central bank will keep interest rates at the level needed for as long as necessary to bring inflation to target, Governor Gabriel Galipolo said. The bank has kept the benchmark rate unchanged since July and has prolonged pauses to bring inflation back to target.

Separately, Treasury data showed Latin America's biggest economy's public debt rose 1.62% in October from the month before to 8.254 trillion reais ($1.54 trillion).

Peruvian stocks .MXNUAMPESCPGPE gained 0.2% and were on course for their fourth consecutive day of gains, the longest streak since early last month.

Political developments in Peru took center stage after the judiciary sentenced former leftist President Pedro Castillo to 11.5 years in prison in a trial for rebellion and conspiracy over his failed 2022 attempt to dissolve Congress and assume broad powers.

Mexican equities .MXX slipped 0.3%, while the peso MXN= was flat. Data released on Thursday showed the country posting a trade surplus of $1.4 billion in October, after adjusting for seasonal fluctuations.

Colombian equities .COLCAP added 0.24%, while the peso COP= fell 0.45% against the greenback. In Chile, stocks .SPIPSA rose 0.8%.

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

Key Latin American stock indexes and currencies:

(Reporting by Niket Nishant in Bengaluru, editing by Ed Osmond and Diane Craft)

((Niket.Nishant@thomsonreuters.com;))