Stock Markets React to Growth Slowdown In China

China has been one of the global engines of growth.  Global stock markets reacted to signs that the Chinese market is cooling off by selling off.  The Japanese stock market was hit hardest.  Its leading index fell by 7.3%.  Some of that may be due the slowdown in China but it also reflected concerns about the domestic economy.  The Japanese index had grown by over 30% since its central bank initiated aggressive policies to battle persistent deflation.  Some profit taking was bound to happen but investors are nervous about the state of the global economy and it does not take much to spook the market.