What the Pros Say: This Rally Won't Last

Despite Wall Street's last-minute selloff, Asian and European stock markets traded higher Thursday. Japan's Nikkei 225 Average closed 10 percent higher on international efforts to provide liquidity to emerging markets and global prospects of lower borrowing costs.

CNBC's experts believe the Japanese index has further upside to go and that investors need to jump in to pick out beaten-down stocks as the rally in Western markets is unlikely to last. Here is what they have to say:

How Long Will This Rally Last?

Credit markets are easing, but not in a substantial fashion, Vasu Menon, vice president of group wealth management at OCBC Bank said, adding that short covering and bargain hunting are currently back in vogue.

Richard Cunningham, strategist at Alecto Financial doesn't think markets have stabilized as they have yet to find a bottom.



Value is Emerging in Markets

Value is continuing to emerge here. Stocks with strong balance sheets, strong recurring cash flows, and compelling valuations are going to be the focus, Fergus O'Sullivan, managing director at Morgan Stanley said. He likes European companies Hays, Air Liquide, Centrica.

Onward and Upward for the Nikkei, AEX

The Nikkei's 10% rise is what you can expect when the index is oversold, according to Edward Loef, technical analyst at Theodoor Gilissen Bankiers, adding that the index will rally for the next few months. Loef also expects the AEX index to rise to near 345 in the following weeks.

Don't Miss the Boat

There's never a better chance to get into stocks than now after the recent massive corrections, according to Stuart Shrimpton, director at Intelligent Investments.

Lock in Short-Term Gains

Investors are using short-term rallies as opportunities to lock in gains, says Andrew Sullivan, sales trader at MainFirst Securities Hong Kong.

Putting Cash to Work

As opportunities begin to emerge in the market, Stephen Davies, CEO at Javelin Wealth Management says he is eyeing good fixed income investments.

Convertible Bonds in Demand

Sean Darby, head of regional strategy at Nomura International recommends buying Asian convertible bonds. He names a few of his favorite picks.

Time to Buy China A-Shares

With valuations so low, Andy Xie, Independent Economist believes it is a good time to pick up China's domestic A-shares. He also explains why he continues to be bearish on the property sector.

Greenback & Yen Under Pressure

Both the U.S. dollar and the yen are under pressure, says Lee Wai Tuck, currency markets strategist at Forecast.

Oil Spike to Last Until Year-End

The hike in oil prices could last to the end of the year, says David Johnson, head of Oil and Gas, Asia, Macquarie Securities.

Hard Landing for Global Growth

Sean Darby, head of regional strategy at Nomura International explains why he expects a hard landing for global growth and the banking/currency crisis in emerging Europe.

Bund Yield Heading to 2.15%: Chartist

The yield on two-year bunds could fall to 2.15 percent and even further, David Sneddon from Credit Suisse told CNBC. Being "long" the front end of fixed income is one of Sneddon's favorite trades at the moment.

© 2012 CNBC.com