New York-traded shares of China Eastern Airlines (NYSE:CEA) plunged 4.42 percent and those of China Southern Airlines (NYSE:ZNH) plunged 2.47 percent in morning trading on tensions between North and South Korea.
Both airlines have regional operations and flights to South Korea. China Southern Airlines also flies to Pyongyang, the capital of North Korea.
On Monday afternoon, South Korea conducted military exercises in disputed waters. With military personnel stationed on Yeonpyeong Island, it fired artillery into the Yellow Sea. The North Korean government warned of retaliating with self-defensive blows, but has so far not made such moves.
The broader Asian stock markets closed down slightly, with the Hang Seng index dropping 0.33 percent and South Korea's Seoul Composite declining 0.30 percent.