By Yimou Lee, Fabian Hamacher and Ann Wang KAOHSIUNG, Taiwan (Reuters) -Taiwan shut down on Wednesday, grounding hundreds of flights and closing schools, offices and financial markets ahead of the arrival of a weakening Typhoon Krathon with one person reported dead and torrential rain lashing the island's south.

Typhoon Krathon is expected to hit the major port city of Kaohsiung in the island's southwest early this afternoon then move across the center of Taiwan and northeast toward the East China Sea, according to the Central Weather Administration. It is expected to be felt in the capital, Taipei, today and Thursday.

Taiwan shut down schools and closed its financial markets on Wednesday as Typhoon Krathon pounded its south and east with torrential rains and winds ahead of its expected landfall.

A typhoon bringing strong winds and torrential rainfall is slowly advancing toward Taiwan, where thousands of people have been evacuated from vulnerable low-lying or mountainous terrain. At least 3ft of rain has fallen in the coastal Taitung County in the past four days and 11.

Taiwan shut down on Wednesday with offices, schools and financial markets closed ahead of the arrival of a weakening Typhoon Krathon, which is forecast to bring storm surges along the coast and torrential rain.

Taiwan closed schools and offices and evacuated hundreds from vulnerable areas around the island ahead of a strong typhoon expected to hit its populated western coast

Typhoon Krathon tracked toward Taiwan with strong winds and heavy rain, with the storm set to make landfall early Thursday and potentially keep the island’s $2.5 trillion stock market closed for a second day.

Taiwan mobilised nearly 40,000 troops on Tuesday to bolster rescue efforts as the powerful Typhoon Krathon approaching its populous southwest coast is expected to bring a storm surge and the coast guard raced to locate 19 sailors who abandoned ship.