Reuters - Asia share indexes were lower Thursday with China weaker as market participants considered inflation concerns ahead of key U.S. economic data. Oil prices rose to near 18-month highs.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3% to 711 points. It went as high as 712.57 Wednesday, a level not seen since early March.

Japan's Nikkei added 0.4%. Australian shares climbed to highs as market participants welcomed stronger-than-expected economic growth data released Wednesday.

China share prices were softer.

While broader stock markets remain close to highs, the momentum seen earlier in the year has ebbed as market participants begin to worry a stronger-than-expected rebound from COVID-19 means higher inflation and sooner-than-expected monetary policy tightening.

A weekly unemployment report and May private payrolls data Thursday will be followed by monthly jobs numbers Friday, with market participants looking for signs of an economic rebound and rising inflation.

Adding to inflation fears, oil prices hit their highest in 18 months on a decision by big producing nations to restore supply gradually only while the slow pace of nuclear talks between the U.S. and Iran also helped.

The U.S. Federal Reserve published its "Beige Book" report, which pointed to labor shortages and inflation pressures.

Investment managers too are becoming increasingly worried with BlackRock Founder Larry Fink the latest to warn that the market was underestimating the risk of higher inflation.

Philadelphia Fed Bank President Patrick Harker also restated his call that "it may be time to at least think about tapering our $120 billion in monthly Treasury bond and mortgage-backed securities purchases."

The Fed has already announced it would begin unwinding the corporate bond holdings it acquired last year to calm credit markets at the height of the pandemic.

In Australia, the central bank too is expected to begin tapering its pandemic emergency stimulus from next month when market participants believe it would announce not extending its three-year yield target beyond the April 2024 bond.

Wall Street's main indexes ended Wednesday's session mixed despite a breathtaking rally in theater chain operator AMC Entertainment Holdings, which nearly doubled in price Wednesday, lifting a group of stocks favored by retail market participants on forums such as Reddit's WallStreetBets.

"Frothiness it seems is there, particularly on the retail side, which may be part of the caution being seen in the wider stock market ahead of nonfarm payrolls Friday," National Australia Bank economist Tapas Strickland said.

Market participants remain unconvinced by central bank assurances that the current inflation upsurge is transitory.

Moves in currency markets have been limited with the dollar index and other important pairs staying in tight ranges.

The dollar index, which measures the greenback against a basket of several trading-partner currencies, was flat at 89.899, not far from a five-month low of 89.535 last week. The yen was barely changed at 109.65 per dollar.

The Canada dollar and the Norway krona have outperformed over the past 24 hours on the back of higher oil prices.

At the other end of the ladder, the New Zealand dollar was a laggard, down 0.2%. The Aussie was little changed at $0.7749.

Brent rose 24 cents to settle at $71.59 a barrel, its highest since January 2020.

U.S. West Texas Intermediate crude rose 25 cents to $69.08 a barrel, its highest since October 2018.