TAIPEI CITY, Oct 2 — Taiwan shut down schools and closed its financial markets today as Typhoon Krathon pounded its south and east with torrential rains and winds ahead of its expected landfall.

Krathon, packing sustained wind speeds of 173 kilometres (107 miles) per hour and gusts of up to 209 kph -- was 160 kilometres southwest of southern Kaohsiung as of 7:00 am (2300 GMT Tuesday), the Central Weather Administration said.

The typhoon, downgraded overnight to medium from strong under Taiwan's measurement system, was now expected to make landfall early tomorrow near Kaohsiung or Tainan, the agency said, nearly a day later than previously expected.

"The landfall time has been delayed because it stayed at its current location for a long time and its speed was slower than expected," forecaster Zeng Zhao-zheng told AFP, adding the typhoon's intensity had been downgraded at 2 am and was expected to continue weakening.

Offices and schools across the island were closed and the interior ministry said nearly 10,000 people had been evacuated from vulnerable areas as a precaution.

President Lai Ching-te warned yesterday that the typhoon was likely to cause "catastrophic damage" and urged the public to be "particularly vigilant" due to its relatively rare route as the typhoon was forecast to exit from the island's east coast.

All domestic flights and ferry services were cancelled Wednesday, and some airlines suspended flights from Taiwan to Japan, Hong Kong, the Philippines and South Korea.

Nearly 40,000 troops were on standby for relief efforts, the defence ministry said.

Across Taiwan, 35 typhoon-related injuries had been reported as of late Tuesday, authorities said without providing details.

Typhoons are common around the region at this time of year.

However, a recent study showed that they are increasingly forming closer to coastlines, intensifying more rapidly and lasting longer over land due to climate change.

In Kaohsiung, authorities have started distributing sandbags and clearing storm drains to avoid a repeat of the widespread flooding seen during typhoon Gaemi in July.

Gaemi was the strongest typhoon to make landfall in Taiwan in eight years, leaving at least 10 people dead and hundreds wounded.

Taiwan is accustomed to frequent tropical storms from July to October, but experts say climate change has increased their intensity, leading to heavy rains, flash floods and strong gusts.

Residents in Kaohsiung also taped up windows, filled sandbags and erected barriers around their homes to keep out floodwaters.

Coast guard officers patrolling the scenic tourist spot of Sizihwan Bay in the area told people to stay away as powerful waves pounded the coast.

The storm was approaching Taiwan after pounding a remote group of Philippine islands, where it cut power and communications and damaged "many" houses, according to a local mayor.

The Philippines' National Disaster Risk Reduction and Management Council said Tuesday that nearly 1,800 people had been evacuated, around half in the Batanes islands near southern Taiwan. — AFP