European stocks dropped and a gauge of emerging-market shares headed for a three-month low as government bonds rose. The Australian dollar strengthened as a China factory gauge unexpectedly advanced.

The Stoxx Europe 600 Index dropped 0.4 percent by 8:22 a.m. in London, with the MSCI Emerging Markets Index sliding 0.3 percent toward its lowest close since June 5. Standard & Poor’s 500 Index futures fell 0.1 percent. Copper climbed 0.4 percent after a gauge of commodities closed at the lowest since July 2009 yesterday. Australian bonds rallied while the local dollar strengthened 0.3 percent from a seven-month low. The yen advanced 0.2 percent.

The so-called flash purchasing managers index rose to 50.5 from a reading of 50.2 in August, HSBC Holdings Plc and Markit Economics said. A similar gauge in France showed a slower-than-estimated contraction. About $574 billion was wiped from the value of global equities yesterday after China’s Finance Minister Lou Jiwei damped speculation leaders in Asia’s biggest economy will implement large-scale stimulus. Factory indexes for the U.S. and euro area are also scheduled.

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