Asians fear terror attacks will damage their fragile economies

Malaysia's recovery is also expected to be hit.

"I would imagine this could mean that the US recovery would be delayed ... that will delay the global recovery," said IDEAglobal.com economist Nizam M Idris in Kuala Lumpur.

However, he said that unless "there is an all out war, I think this impact on sentiment could be quite shortlived," he said.