yepp..
increase compression (GX160 head, thinner gasket etc..)
retard ignition timing ever so slightly (yes retard is correct)
that way you shift the torque curve to lower rpms
(as opposed to advanced timing which does -you guessed it- shifts the peak torque towards higher rpms )
I'd say ever so slightly.. which means two maybe 4 degrees should be all you need.
yes lower gear ratios improve wheel torque like nothing else;
with one exception:
A torque converter! (if you have a cent clutch, replace it with a series 30 [or clone])
almost 2.7 times the torque without anything else (some losses... but still a huge improvement)
and as a bonus the engine is still untouched for even higher torque gains
'sid