Pros Say: European Banks STILL Not Attractive

European stocks rose Thursday on the back of the UK government's announcement that it would be launching a scheme which could end up insuring more than $712 billion worth of toxic assets in a bid to get lending flowing again.

Despite this, experts tell CNBC to stay clear of UK and European stocks and look for opportunities in the Asian banking sector.

Avoid UK, European Bank Stocks

Willem Nabarro, head of European equities for Asia at Exane-BNP Paribas, says investors should not be investing in financials in the UK and Europe. He discusses the state of the banking sector.

Opportunities for Asian Banks

Paul Schulte, managing director at Nomura International, says Asian banks are small but well-capitalized and they have the chance now to gain significant market share from services once the stronghold of big European and US institutions.

Banking Systems Need Government Intervention

The governments have to lend a hand to the banking systems everywhere, except Asia, says Paul Schulte, managing director at Nomura International.

Dollar-Yen Could Hit 100 Next Week

Markets are more focused on economic fundamentals now that interest rates are moving to almost zero in major economies, says Jeffrey Halley, senior manager of FX trading at Saxo Capital Markets. He believes USD-Yen could touch 100 as early as next week.

Asian Currencies Seen Weakening

Virtually all Asian currencies will be weakening against the dollar going forward, says Magnus Prim, chief strategist Asia, trading strategy at SEB Merchant Banking.

Won May Continue to Weaken in Near Term

There is a risk that the South Korean won may continue weaken further in the near-term, says Olivier Desbarres, director of FX strategy at Credit Suisse.

Singapore Economy to Stay Weak

Singapore will see a downturn in GDP numbers for at least in the first two quarters of 2009 due to the country's dependence on exports, says Nicole Sze, investment analyst at Bank Julius Baer.

European Optimism is 'Mystifying'

"The US optimism is based around Obama, but the optimism in Europe is a bit mystifying," Chris Dedicoat, president of Cisco Europe, said. He joined CNBC to discuss his point of view on the world economy and when the bear will return to the woods.

Next-Generation Tech Stocks

Investors in the technology sector should look for companies that are well positioned for the “next generation tech cycle” like Cisco, Ben Rogoff from Polar Capital told CNBC.