The sentiment profile of Asian equities suggests near-term signals that markets are running too hot should be tempered by longer-term economic fundamentals. Non-Japan Asia is forecast to see growth of a world-beating 6 per cent this year while inflation moderates - a combination supporting higher stock valuations. That economic revival has left Asia ex-Japan poised at key technical levels against global equities. In the near term, extended optimism is likely to act as a headwind, but a break higher for regional stock benchmarks would suggest a 10 per cent relative upside target in the medium term, proprietary sentiment indicators from Absolute Strategy Research show.