TOKYO, Jan. 24 (Xinhua) -- Japan's key stock index snapped its four-day winning streak on Friday after the Bank of Japan (BOJ) decided to raise its policy interest rate to 0.5 percent.

The benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, closed at 39,931.98, down 26.89 points, or 0.07 percent from the previous day.

Following the rate hike, domestic bond markets saw long-term interest rates rise, increasing concerns about stock overvaluation. Selling pressure intensified, particularly on major stocks like SoftBank Group and Sony Group, which had been gaining in prior sessions.

In its economic report, the BOJ raised its inflation forecast through fiscal 2026 compared to its October 2024 projections, leading to market speculation about a faster pace of rate hikes.

The broader TOPIX index also declined, closing 0.70 points, or 0.03 percent, lower at 2,751.04.

On the Tokyo Stock Exchange Prime Market, declining stocks numbered 516, while 1,044 advanced, and 81 remained unchanged. Enditem

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