TOKYO -- While major Japanese companies suffer earnings slowdowns on external factors such as China's decelerating economy, many smaller ones are seeing gains by capturing brisk demand in Japan or capitalizing on unique technologies.
Aggregate pretax profit of 639 key companies traded on five Japanese startup stock markets including the Tokyo Stock Exchange Mothers and Jasdaq rose 12% on the year in the October-December quarter. They gained momentum from their 3% profit growth for the July-September period. More than half of the companies covered enjoyed a profit increase. But for companies on other stock markets across Japan, combined profit fell 4% in the October-December period.