* Asian shares modestly higher but Nikkei falls
* Dollar index firms after more hawkish Fed comments
* Oil rises, gold lower
By Richard Leong
HONG KONG, April 1 (Reuters) - Asian shares rose on Friday, looking to extend three straight quarters of gains, while the dollar strengthened against most major currencies after hawkish comments from a senior U.S. Federal Reserve official.
Oil also kicked off the new quarter in positive fashion with U.S. prices climbing after closing at their highest in 2-1/2 years on Thursday against the backdrop of continued fighting in Libya and unrest in the Middle East.
Gold fell in early trading after notching a 10th quarterly gain.
Investors are treading cautiously ahead of the latest payroll data from the United States later on Friday, which should provide more clues on the direction of global economic growth.
Signs of improving business activity and rising inflation globally have led a number of central banks either to tighten policies or talk tough on inflation.
In the U.S., Minneapolis Fed President Narayana Kocherlakota told the Wall Street Journal on Thursday that the Fed could raise rates by the end of 2011, far sooner than expected by financial markets. Most analysts do not expect rate hikes until the second half of 2012. See [ID:nN31230020]
A recent spate of hawkish comments from Fed officials have helped boost the dollar in recent sessions.
The dollar index , which tracks its performance against a basket of major currencies, was up 0.3 percent at 76.071. The greenback has rebounded against the yen, a move that has propelled Asian stock markets because it would help the region's exporters.
The MSCI's index of Asia-Pacific shares outside Japan was up 0.08 percent on the day, but Japan's Nikkei was down 0.50 percent, erasing early gains.
U.S. crude
Spot gold traded at $1,432.55 an ounce, down from $1,436.48 late in New York on Thursday.
(Reporting by Chikafumi Hodo in TOKYO,; Ian Chua in SYDNEY; Editing by Sugita Katyal)