Asian stocks endured a sell-off on Monday, with airline operators and tourism-related plays among the hardest-hit, as sentiment was badly dented by Friday's brutal terrorist attacks in Paris.
The attacks, which occurred across seven locations, leaving 132 people dead and hundreds more injured, will likely have a "short, sharp effect" on equity markets, analysts say.
"The horrific events in Paris on Friday are likely to have a short, sharp effect in markets but in the long-term, real effects are more likely to influence political risk than the markets themselves," IG's market strategist Evan Lucas wrote in a note issued early Monday.
Meanwhile, U.S. stock futures fell on Sunday, with the Dow futures down 150 points and the S&P futures declining 0.76 percent in early Asian trading. European equities were also not spared amid the latest tragedy; the London FTSE index is expected to open 1.8 percent lower, the German DAX down 2 percent and the French CAC losing 3.7 percent, according to spread better IG.
"[The attacks] could have a significant effect as we saw markets quickly sold off at the close as the attacks took place... so that would equate to about 100 more points off the Dow and about 10-15 more points on the S&P. [Markets] might get worse as we see some fear, "Todd Horwitz, chief strategist at Bubbatrading.com, told CNBC's "The Rundown."
Major U.S. averages each lost more than 1 percent on Friday, pressured by a continued decline in oil prices, a sell-off in tech firms and soft reports on the health of the consumer. Wall Street ended the week down more than 3.5 percent, marking their worst since the week ended August 21 and breaking a 6-week winning streak.
On the other hand, commodities like gold and oil advanced as the rise in geopolitical risks prompted a flight to safety.
West Texas Intermediate crude was last seen 0.8 percent higher at $41.05 a barrel in early Asian trade, while Brent rose 1.1 percent to $44.96 a barrel.
There was also broad-based buying of the yen which was last seen 0.1 percent higher at 122.47 per dollar. The euro, meanwhile, came under heavy selling in the wake of the attacks with the single currency falling 0.5 percent to 133.24 against the Japanese yen in early Asian trade.