* Material stocks, banks add most to losses
* ASX sees flurry of deals, APA Group surges to record
* NZ closes at record
(Updates to close)
June 13 (Reuters) - Mining stocks led Australian shares lower on Wednesday ahead of the U.S. Federal Reserve's rate decision, with investors on the lookout for any mention of the pace of hikes this year.
Markets expect the Fed to raise rates for the second time in the year but caution prevails as investors await its language on the pace of further tightening. benchmark S&P/ASX 200 index .AXJO was down 0.5 percent or 30.9 points, to 6,023.5. It added 0.2 percent on Tuesday.
The index of mining stocks .AXMM accounted for most of the main index's fall, extending losses to a third session on weakness in base metal prices. MET/L
A hike in interest rates can strengthen the dollar and make dollar-denominated metals pricier for holders of other currencies.
Heavyweight BHP Billiton (LON:BLT) BHP.AX was the benchmark's top drag, down 1.3 percent. Rival Rio Tinto (LON:RIO) RIO.AX lost 1.2 percent.
Australia's "Big Four" banks also sapped sentiment, shedding between 0.3 percent and 1 percent.
Commonwealth Bank of Australia CBA.AX finished at its worst level since 2013.
Gas pipeline company APA Group APA.AX propped up the main board, rising nearly 21 percent to a record close following a $9.81 billion takeover offer from a consortium led by Hong Kong's CK Infrastructure Holdings 1038.HK . a busy day for deals, Australian billionaire Gina Rinehart's Hancock Prospecting Pty Ltd group of companies disclosed a 19.96 percent stake in Atlas Iron Ltd AGO.AX , joining the race for the small iron ore miner. closed at its highest in over a year, up 6 percent.
Also, France's ERAMET ERMT.PA upped its offer price for Australia's Mineral Deposits Ltd MDL.AX by nearly 20 percent but Mineral Deposit's shares still dropped 4.5 percent. Group BX.N signed an agreement to buy Australia's Investa Office Fund IOF.AX for $2.3 billion, helping Investa shares up 0.2 percent. Gateway Lifestyle Group GTY.AX gained over 14 percent on Hometown's buyout proposal that values the company at $480 million. New Zealand's benchmark S&P/NZX 50 index .NZ50 erased earlier losses to surge to its best close of all time, up 18.5 points to 8,977.31. Healthcare stocks were the star performers.
Fisher & Paykel Healthcare Corporation FPH.NZ , up 1.6 percent, gained for a tenth straight session to scale a record close.