Asian stocks rally as investors return to AI trade; oil eases on Middle East tensions cooling

Seoul's Kospi led gains on Tuesday, reclaiming most of the 8.3 percent lost in Monday's plunge. Taipei added 2.8 percent and Tokyo more than two percent. Shanghai, Singapore, Manila, Mumbai, Bangkok and Wellington also rose, while Hong Kong and Sydney edged down.

The rebound followed profit-taking selling that analysts characterized as a healthy pause in the rally since March, driven partly by disappointing revenue forecasts from chip maker Broadcom. Iran and Israel announced they had halted hostilities after exchanging strikes, easing Middle East tensions and pushing oil prices down.

The US economy created more than double the number of jobs than expected in May, but raised pressure on the Federal Reserve to tighten monetary policy while combating surging inflation. Analysts noted that valuations had become stretched in parts of the market, though the AI trade itself was "by no means the end."