Sept 26 (Reuters) - Hong Kong shares steadies on Tuesday following the previous session's sharp falls, as investors looked past rising tensions on the Korean peninsula and instead focused on signs of improvement in China's economy.
The Hang Seng index rose 0.1 percent, to 27,513.01, while the China Enterprises Index gained 0.5 percent, to 10,968.39 points.
North Korea's foreign minister said on Monday that a weekend tweet by President Donald Trump counted as a declaration of war and that Pyongyang reserved the right to take countermeasures, including shooting down U.S. bombers even if they are not in its air space.
Investors, having coped with weeks of rising tensions on the Korean peninsula, instead focused on the outlook for China.
The Asian Development Bank maintained its 2017 and 2018 forecasts for China's growth at 6.7 percent and 6.4 percent. It had raised them in July.
And on Monday, China's state planner said the growth of the country's overall leverage ratio has been clearly slowing and is now stabilising. The comments came days after S&P downgraded China's sovereign debt rating, saying government efforts to curb debt risks were not working as quickly as hoped.
Sector performance was mixed.
The property sector stabilized after Monday's slump, while the energy sector jumped nearly 3 percent on higher oil prices. (Reporting Samuel Shen and John Ruwitch; Editing by Shri Navaratnam)