Asian shares fall after Paris attacks

Asians shares headed lower after the deadly attacks in Paris heightened risk aversion and data showed that Japan's economy was back in recession.

Terror attacks by gunmen and bombers killed 129 people in the French capital on Friday and led investors to dump risky assets in favour of haven currencies such as the Japanese yen.

The euro fell to 131.31 yen from 131.99 yen in New York on Friday.

Japan's Nikkei index closed down 1% at 19,393.69.

"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," said IG market strategist Evan Lucas in a note.

Third-quarter economic data showed that Japan's economy shrank 0.8% on an annualised basis, which was worse than forecast. On a quarterly basis, the economy contracted by 0.2%.

Economists said the weak growth puts more pressure on the government and central bank to introduce more stimulus measures to revive activity in the economy.

Australia's benchmark S&P/ASX 200 index closed down 0.9% at 5,003.80, while South Korea's Kospi index finished 1.5% lower at 1,943.02.

Regulators crackdown

In China, Hong Kong's Hang Seng index closed down 1.72% to 22,010.82, while the Shanghai Composite moved into positive territory towards the end of trade to close up 0.73% at 3,606.96.

Investors' confidence was affected by an announcement made by regulators over the weekend that they would raise margin finance requirements to prevent systemic risks.

The amount of collateral required for margin loans would double from 50% to 100% of the amount borrowed, the Shanghai and Shenzhen stock exchanges and China Securities Regulatory Commission (CSRC) said in separate statements.

Airline stocks were among the hardest hit in the region on fears that the Paris attacks would deter people from travelling overseas.

Hong Kong-listed shares of Air China closed down by 3.5%, and Cathay Pacific shares closed down 2.8%.

In Sydney, Virgin Australia shares fell 6.5% and Qantas shares fell 1.7%.