Wednesday's Asia Stocks Recap

Asian markets advanced Wednesday following cues from the U.S. markets after the Federal Reserve cut its key interest rate by 75 basis points, sparking a huge rally on Wall Street. On Wednesday, China's Shanghai Composite Index rose 92.71 points, or 2.53%, at 3,761.61. Shares in Hong Kong advanced with the Hang Seng Index closed up 482.33 points, or 1.4%, to 21,866.94, rebounding from Monday's 1000-plus point decline.

Also helping shares in China's mainland was a rumor that the government might intervene in the falling market by cutting the stock stamp duty. The rumor wasn't confirmed among the trading community and the government wasn't offering up any comments on the situation.

China's premiere advertising company Focus Media (FMCN Quote) reported fourth-quarter earnings of $68 million, or 52 cents a share, vs. Wall Street estimates of 48 cents a share. Total revenue jumped 171% to $184.6 million, vs. $68 million a year ago. The company said the strong results were due to strong Internet ad revenue and a rise in digital out-of-home ad revenue. Focus Media forecasted full-year revenue to come in between the range of $900 million to $930 million and adjusted earnings between $280 million and $300 million, or $2.06 to $2.21 per share. Wall Street estimates are for revenue of $832.9 million and a per-share profit of $2.08 for the year. Despite the strong results Wall Street sold the stock off 11% Wednesday to $33.22 on more than 5 times average daily volume.

Chinese financial media company Xinhua Finance Media (XFML Quote) ripped 34% higher after the company announced that two of its Fortune China financial TV programs, "Fortune China Weekly" and "Fortune Celebrity" have expanded landing coverage to a total of 80 terrestrial TV channels across 24 of China's 31 provinces. ADR shares of XFML finished up 69 cents at $2.71 on heavy volume. ...