China's Shanghai Composite index slips 0.22%

Asian stocks followed Wall Street lower on Thursday after longer-dated U.S. Treasury yields hit their highest in 18 months on concerns that a new budget proposal could swell the country's federal deficit.

U.S. President Donald Trump is championing an extension of his 2017 tax cuts, which analysts warn could add trillions to the federal governments already massive $36.2 trillion debt pile. The plan has sparked fears of an even wider deficit, especially as interest payments continue to soar.

Former Treasury Secretary Steven Mnuchin said during a panel discussion at the Qatar Economic Forum that he's more alarmed by the growing budget deficit than the trade deficit, and urged Washington to prioritize fiscal repair.

The dollar stayed weak in Asian trade on U.S. fiscal woes and gold scaled a two-week high while oil extended losses for a third straight session after a surprise inventory build and amid Iran-U.S. nuclear talks.

China's Shanghai Composite index slipped 0.22 percent to 3,380.19 and Hong Kong's Hang Seng index fell 1.19 percent to 23,544.31 on U.S. fiscal concerns. Baidu lost 4 percent after posting a marginal rise in Q1 revenues.

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