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Asian stocks were largely treading water Thursday, as investors stayed focused on key monetary policy meetings next week, but a firmer yen pressured Japanese stocks.

The Nikkei Stock Average slid 1% in morning trade, with its week-to-date losses extending to 3.1%. The S&P/ASX 200 edged 0.1% lower and Hang Seng futures slipped 0.1%. Elsewhere, South Korea, China and Taiwan were closed for a public holiday.

"There's a holding pattern in the market today," said Chris Weston, a market analyst at IG Market Ltd. "We're just really trying to take our cues from what happens in the States at the moment."

The U.S. Federal Reserve will kick off its two-day meeting on Tuesday, during which central bankers will vote on whether to raise interest rates. Higher rates would typically result in money flowing out of emerging markets.

The yen appreciated 0.33% against the dollar, on bets the Fed is less likely to lift interest rates in coming months. Japanese automakers took a hit as their exports grew more expensive, with Mitsubishi Motors Corp. last down 3.2%, Honda Motor Co. Ltd. sliding 2.7% and Nissan Motor Co. Ltd. off 2.6%.

Nevertheless, the dollar-yen currency pair is expected to remain directionless, with many investors sitting on the sidelines ahead of monetary-policy meetings in the U.S. and Japan next week, said Osao Iizuka, head of FX trading at Sumitomo Mitsui Trust Bank.

Going forward, investors will be keeping a close eye on U.S. retail sales for August later Thursday, which could also affect the Fed's willingness to move rates.

Hiroyuki Kachi contributed to this article.

Write to Ese Erheriene at ese.erheriene@wsj.com

(END) Dow Jones Newswires

September 14, 2016 22:45 ET (02:45 GMT)

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