Most high-level synthesis tools for asynchronous circuits take descriptions in concurrent hardware description languages and generate networks of macromodules or handshake components. In this paper, we propose a peephole optimizer for these networks. Our peephole optimizer first deduces an equivalent blackbox behavior for the network using Dill's trace-theoretic parallel composition operator. It then applies a new procedure called burst-mode reduction to obtain burst-mode machines from the deduced behavior. In a significant number of examples, our optimizer achieves gate-count improvements by a factor of five, and speed (cycle-time) improvements by a factor of two. Burst-mode reduction can be applied to any macromodule network that is delay insensitive as well as deterministic. A significant number of asynchronous circuits, especially those generated by asynchronous high-level synthesis tools, fall into this class, thus making our procedure widely applicable.