WRT Westftrust Stapled

0000 GMT [Dow Jones] Australia's S&P/ASX 200 is down 0.8% at 5066 after a late reversal of strength on Wall Street Thursday raised concern of a potential negative market reaction to the US$85 billion U.S. sequester, due to take effect Friday. "Portfolio rebalancing contributed to Australian share market strength Thursday and we are now seeing some caution before the U.S. sequester, although a last minute deal cant' be ruled out," IG market strategist Stan Shamu. President Barack Obama and congressional leaders are scheduled to meet later Friday. Buyers are also standing aside before China's official manufacturing PMI data due shortly, after the pullback in HSBC's China flash PMI this week. Major stocks including BHP (BHP.AU), Woolworths (WOW.AU), Woodside (WPL.AU), Rio Tinto (RIO.AU), QBE (QBE.AU) and Fortescue (FMG.AU) are down 1.3%-2.2% after strong month-end gains contributed to a 1.3% rise in the S&P/ASX 200 Thursday, its biggest rise since July. Westfield Retail Trust (WRT.AU) is down 3.3% after the Lowy Family sold its stake in the real estate investment trust for A$6645 million Thursday. Major banks are holding up relatively well, helped by upgrades from J.P. Morgan. (david.rogers1@wsj.com)

 
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