TOKYO — Japan's Nikkei Stock Average recently broke through the 70,000 mark, signaling a robust stock market. However, Yasuhisa Hirohama, representing small businesses like his, points to an "enormous gap" between this market boom and the economic reality faced by smaller firms.

Yamato Gokin, a copper alloy manufacturer located in Miyoshi near Tokyo, exemplifies the challenges confronting many small companies that form the backbone of Japan's economy. These firms continue to be squeezed by inflation and lack the pricing power to benefit from the broader market gains.

This divergence underscores a two-speed economy in Japan, where large corporations and the stock market thrive while smaller businesses grapple with persistent financial pressures.

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Yamato Gokin factory in Miyoshi (Photo by Kotaro Igarashi)