Airline and travel-related stocks tumbled in Asia earlier 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 grapples 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 so called 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.

On the FTSE in London travel operator TUI and airline group IAG (which owns Aer Lingus) are both among the worst performing shares today.

In Dublin, Ryanair has dropped 1.39% today.

Earlier, in Shanghai, Air China, China Eastern Airlines and China Southern Airlines each lost more than 2%, while tourism firms also retreated.

Hong Kong flag carrier Cathay Pacific was down 2.7%.

"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".

Sydney-listed flag carrier Qantas was down 1.7% and Virgin Australia tumbled 6.5% as Air New Zealand was 2.8% lower in Wellington.

Japan Airlines closed down 2.95% and rival All Nippon Airways declined 3.46%. HIS, a major travel agency, finished 5.02% lower due to trip cancellations.

"France is a main route. Japanese airlines get the most profit from international routes," said Hajime Tozaki, a commerce professor at Waseda University.

Andrew Herdman, director general of the Association of Asia Pacific Airlines, urged travellers to react prudently to terror attacks.

"Past experience tells us that we must be careful not to let our emotions overwhelm good judgment, and care is needed to ensure that we do not over-react in ways which may only amplify the damage inflicted upon society," he told AFP.

Meanwhile, European shares reversed most of their earlier losses this morning with no long-term economic impact seen from Friday's attack in Paris in which 129 people died.

London's FTSE index had gained 0.36% this afternoon, while the Frankfurt DAX moved 0.23% higher and the Paris CAC dipped 0.03%. Shares in Dublin were marginally higher in afternoon trade.

In earlier Asian trade, the Hang Seng Index in Hong Kong suffered a 1.7% fall, while Japan's Nikkei 225 was down just over 1%.