Asian stocks rebounded posting strong gains on Wednesday boosted by the U.S. Federal Reserve decision to further cut key interest rate cuts by 0.75 percent, the biggest cut in 23 years.

Japanese stocks gained after losing more than 10 percent in the previous two sessions. Japan's Nikkei 225 average rose 3.8 percent to 13,045.76 and the broader Topix index advanced 3.8 percent to 1,266.64.

Asia's benchmarks suffered their worst two-day drop in almost 18 years on Monday on concern the global economy is slowing.

In a quick recovery move, the Federal Reserve cut its fed funds rate, or the interest rate at which banks lend to each other overnight, by 0.75 percent to 3.5 percent.

The three-quarters of a percentage point cut came after global financial markets sold off on Monday on fears that the credit market could further drive the U.S. economy into recession.