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South Korea's Kospi index closed flat at 2,065.04 after the economy recorded its weakest expansion in six years.

Dragged down by the Mers virus and weak exports, GDP in the second quarter grew just 0.3% in the second quarter compared with 0.8% in the first.

Further bad news came from South Korean car giant Hyundai, which reported a 24% drop in net profit after overseas sales were weaker than expected.

Sales to China, which is Hyundai's biggest market, fell by about 8%.

In Japan, the Nikkei 225 edged up 0.4% to close at 20,683.95.

Data released on Thursday showed Japan's trade deficit narrowed sharply last month, as exports picked up on the back of a weaker yen.

In June, the value of exports jumped 9.5% while imports fell by 2.9% leaving the trade deficit at 69.0bn yen.

Mainland China stocks extended their recovery on Thursday, rising for a sixth consecutive session. The benchmark Shanghai Composite closed up 2.4% at 4,123.92, while Hong Kong's Hang Seng ended 0.5% higher at 25,398.85.

Australian shares continued to fall, with the ASX 200 index down 0.4% at 5,590.30. Shares in mining companies lost ground again, with BHP Billiton down 2.8% and Fortescue falling 6%.

However, gold miner Newcrest bucked the downward trend, rising 2.8% after it reported higher gold production in the three months to June.