The KOSPI index closed down 1.97 points at 1,271.33, off a low of 1,259.32.
Dealers said the market moved sideways for much of the session, with investors hesitant to build positions ahead of the weekend against a backdrop of high oil prices driven by Israel's continued attacks on Lebanon.
Hong Kong share prices closed flat as investors traded cautiously after a retreat on Wall Street overnight and some disappointing earnings from US companies, dealers said.
They said the market is waiting for additional data from the US, including the second-quarter growth figures to be released next Friday, for more clues on the prospects for interest rates.
The Hang Seng Index closed down 8.44 points at 16,464.18, off a low of 16,376.03 and a high of 16,483.23.
Shanghai
Chinese share prices closed 0.61 percent higher on continued bargain-hunting, with banks and property developers finding favor again, dealers said.
They said volumes were modest again and this suggested a continued note of caution after very heavy losses on Wednesday, when the market was hit by another opportunistic bout of profit-taking.
The Shanghai A-share Index added 10.60 points to 1,750.69, and the Shenzhen A-share Index was up 3.05 points or 0.69 percent at 446.73.
The benchmark Shanghai Composite Index, which covers both A and B-shares, rose 10.21 points or 0.62 percent at 1,665.33.
Australian share prices closed 0.72 percent lower as falling commodity prices and profit-taking hit the resources sector and the market followed a negative lead from Wall Street, dealers said.
The benchmark SP/ASX 200 shed 35.9 points to 4,960.6, while the broader All Ordinaries lost 33.1 points to 4,934.3.
Singapore share prices closed 0.51 percent lower following Wall Street's falls overnight and disappointing second-quarter results from index heavyweight Chartered Semiconductor, dealers said.
The Straits Times Index was down 12.17 points at 2,371.37 on volume of 738.37 million shares.
Malaysian share prices closed 0.88 percent higher on follow-through interest in blue-chips, with sentiment boosted by several strong corporate quarterly results, dealers said.
The Kuala Lumpur Composite Index gained 8.10 points to 924.72.
Thai share prices closed 2.50 percent higher as political uncertainties eased after the king endorsed new elections to be held on October 15, dealers said.
The Stock Exchange of Thailand (SET) composite index jumped 16.75 points to 685.71 points while the blue-chip SET 50 index rose 11.50 to 477.20.
Indian share prices fell 2.58 percent on weak Asian markets and concerns about a possible domestic interest rate hike early next week, dealers said.
The benchmark 30-share SENSEX index was down 267.03 points to 10,085.91
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