Despite new governments taking over in Italy and Greece to push through key reforms, the cost of borrowing for under-pressure countries remained dangerously high.
Tokyo finished 0.19 per cent, or 16.47 points, higher at 8,479.63. Among leading stocks, Toyota rose 1.54 per cent to 2,505 yen and Honda climbed 1.39 per cent to 2,255 yen. Sony was up 1.07 per cent at 1,322 yen.
Scandal-hit Olympus extended gains for the fourth day amid easing delisting fears, finishing up 0.94 per cent at 747 yen.
But the camera and precision equipment maker sharply pared its earlier gains -- rising as much as 18.6 per cent to 878 in early trade -- after its main shareholder Nippon Life Insurance Co. said it cut its stake to 5.11 per cent from 8.18 per cent.
The Sydney market rose 0.25 per cent, or 10.8 points, to 4,258.2 and Seoul added 1.11 per cent, or 20.60 points, to 1,876.67.
Hong Kong fell 0.76 per cent, or 143.43 points, to 18,817.47, while Shanghai closed 0.16 per cent, or 3.91 points, lower at 2,463.81
Fitch ratings agency warned that the contagion effects on US banks were "potentially large" if the crisis spreads beyond Greece, Ireland, Italy, Portugal, and Spain.
It pointed to the risks in France, where banks are being weakened by their own eurozone exposure, while Paris is cutting spending to avoid losing its AAA credit rating.
Fitch said the top five US banks had $188 billion in exposure to France at the end of the second quarter, $114 billion of it to French banks.
The warnings highlighted the possible knock-on effects for Asian investors.
"European banks will likely have to continue reducing risky assets," said Kenichi Hirano, operating officer at Tachibana Securities.
"Asian economies, seen as the engine of global growth, may be damaged... as (European banks) pull their funds out of emerging economies," he said.
Shanghai dealers were little moved by the Chinese central bank's announcement that it would "fine-tune" monetary policy, raising hopes that credit restrictions imposed in the past year will be relaxed.
On currency markets, the euro edged up after sinking in New York.
The common unit fetched $1.3483 and 103.78 yen in Tokyo, from $1.3451 and 103.70 yen in New York late Wednesday.
The dollar was at 76.96 yen from 77.05 yen.
Oil eased on profit-taking after hitting five-month highs late Wednesday.
New York's main oil contract, West Texas Intermediate (WTI) light sweet crude for December delivery, fell 37 cents to $102.22 per barrel.
Brent North Sea crude for delivery in January retreated 44 cents to $114.44.
Gold was trading at $1,763.40 an ounce by 0810 GMT, compared with $1,773.15 late Thursday.
In other markets:
-- Taipei was almost unchanged, nudging 0.29 points higher to 7,387.81.
HTC rose 0.89 per cent to Tw$689.0 while TSMC was 0.4 per cent higher at Tw$75.7.
-- Manila fell 0.16 per cent, or 6.96 points, to 4,334.66.
San Miguel was up 1.4 per cent at 126.60 pesos and port operator ICTSI rose 1.8 per cent to 58.00 pesos while food firm Universal Robina fell 0.8 per cent to 51.90 pesos.
-- Wellington closed flat, edging 0.69 points lower to 3,280.73.
Telecom fell 1.0 per cent to NZ$2.525, while gaming group Sky City Entertainment rose 0.9 per cent to NZ$3.53.
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