Some investors stayed on the sidelines ahead of Group of Seven meetings to be held this week in Japan.
The Nikkei ended flat at 16,646.66.
Oil shares' drops weighed after oil prices fell, pulled down by rising U.S. crude inventories, a stronger dollar and surging output from Iran to Europe and Asia.
China stocks were little changed on Thursday, and trading volume shrank to near 3-1/2-month lows as many investors sat on their hands amid economic worries and revived concerns U.S. interest rates will go up soon.
The blue-chip CSI300 index fell 0.2 percent, to 3,062.50, while the Shanghai Composite Index was virtually unchanged, at 2,806.91 points.
Investors were cautious due the growing possibility of a U.S. hike in June, after minutes from the last Federal Reserve meeting showed central bank officials felt the U.S. economy could be ready for such a move.
The China market has already been sluggish recently on fears that Beijing is shifting policy away from rapid credit expansion to stimulate growth.
Hong Kong stocks closed at the lowest level in 2-1/2 months on Thursday, joining most Asian markets in sliding on the growing possibility of another U.S. rate hike soon.
The Hang Seng index fell 0.7 percent, to 19,694.33, the lowest close since March 1. The China Enterprises Index lost 0.7 percent, to 8,243.20 points.
Investors, already worried about China's economic health, became more cautious as minutes from the last Federal Reserve meeting showed central bank officials felt the U.S. economy could be ready for that in June.
The prospects of further U.S. monetary tightening "would certainly exert pressure on the stock market", said Alex Fan, strategist at GF Holdings (Hong Kong) Corp.
Reference: Reuters
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