Paris attacks weigh on airline, travel stocks but impact seen short-lived

AIRLINE and travel-related stocks tumbled in Asia Monday following the deadly terror attacks in Paris, but analysts and industry players said they expect the impact to be short-lived.

Travellers from the region cancelled trips as France grappled with the aftermath of the carnage that left at least 129 people dead and more than 350 wounded.

The horrific events come just a little over two weeks after a Russian passenger plane came down in Egypt's Sinai peninsula, killing all 224 people on board, which Islamic State militants have claimed responsibility for.

"Whenever there's terrorism, businesses are affected. Worst hit are commerce and tourism, and as a consequence, airlines," said Shukor Yusof, an analyst with aviation research firm Endau Analytics.

Most stock markets fell across Asia, with airlines and travel-related firms among the most hurt.

In Shanghai, Air China, China Eastern Airlines and China Southern Airlines each lost more than two percent, while tourism firms also retreated -- China CYTS Tours Holding lost 1.28 percent and China International Travel Service fell 1.05 percent.

Hong Kong flag carrier Cathay Pacific was down 2.7 percent.

"The airlines and tourism companies are affected by the Paris attack," Haitong Securities analyst Zhang Qi told AFP. "But it's more of a psychological impact on the stock market," he said.

But Hong Kong-based financial analyst Kevin Tam said "the actual impact won't be that much because of the geographical concentration. There will be more material impact on European and American travel-related companies".

Singapore Airlines was down 0.92 percent in late afternoon trade in the city-state and South Korean flag carrier Korean Air closed 3.33 lower while rival Asiana Airlines finished down 3.32 percent in Seoul.