A chain reaction of stock market turbulence continues around the world following the devaluation of the Chinese yuan earlier this month. The surprise move by the People's Bank of China, which appeared to reflect the Chinese leadership's attempt to help buoy exports through a cheaper currency, resulted in underlining the seriousness of the slowdown of the country's economy. The Nikkei average on the Tokyo Stock Exchange fell for six straight trading days in a row to Tuesday — the first time since Prime Minister Shinzo Abe returned to office in December 2012, plunging to a six-month low below 18,000.

Various other factors are contributing to the market turbulence, including the speculation over a U.S. interest rate hike that could result in the pullout of funds from currency and stock markets in emerging economies. The turbulence in share prices reportedly led investors to shift their funds to safe havens such as the yen, pushing the currency to a seven-month high against the dollar in Monday's New York trading and threatening to trim the earnings of globally-operating major Japanese firms.

Still, the biggest concern remains the severer-than-anticipated slowdown in China's growth and its worldwide impact. While the market turbulence may stabilize at some point, Japan should brace for a "China shock" to the global economy, particularly in view of the growing dependency of its economy on Chinese demand — including the spending spree by the record numbers of Chinese tourists who are visiting the country.