Asian stocks rallied on hopes of a Middle East peace deal, tempering inflation fears as oil prices fell to two-month lows. The market also anticipated Elon Musk's SpaceX IPO, which set a record $75 billion. President Trump indicated a potential peace deal signing soon, boosting market sentiment.

(Bloomberg) -- Asian stocks rebounded from their biggest drop since March as tensions in the Middle East eased and a selloff in artificial intelligence shares abated.

Asian stocks enjoyed a partial rebound from the previous day's rout as investors returned to the AI trade, while easing Middle East tensions also provided support and pushed oil…