Markets, work suspended as Typhoon Gaemi barrels towards Taiwan

By Walid Berrazeg

HUALIEN, Taiwan (Reuters) -Financial markets will close and people given the day off work as Typhoon Gaemi barrelled towards Taiwan on Tuesday bringing strong winds and torrential rain, with the annual Han Kuang war games curtailed and emergency equipment readied.

Gaemi, the first typhoon of the season to affect Taiwan, is expected to make landfall on the northeast coast early evening on Wednesday, according to the island's Central Weather Administration.

Currently categorised as a medium-strength typhoon by Taiwan, it is then likely to move across the Taiwan Strait and then hit the southeastern Chinese province of Fujian on Friday.

Capital Taipei, as well as the neighbouring cities of New Taipei, Keelung and Taoyuan, will close schools and give people the day off on Wednesday, with the financial markets also closed.

"Tomorrow, please stay at home," Taipei Mayor Chiang Wan-an wrote on his Facebook page. "Gaemi, the first typhoon to make landfall this year, continues to strengthen."

However, TSMC , the world's largest contract chipmaker, said it expected all its factories would maintain normal production during the typhoon, adding it had activated routine preparation procedures.

Some mountainous central and southern Taiwan counties are expected to see total rainfall of up to 1,800 mm (70 inches) during the typhoon, the weather administration said.

The government put more than 1,000 rubber boats on standby for possible flooding across the island, which will see the storm coincide with the annual high tides, and rushed emergency food, water and communications equipment to remote areas.

Taiwan's annual Han Kuang military drills taking place this week have been curtailed, including cancelling fighter jet exercises on the east coast, the defence ministry said.

"The impact from the typhoon at present on the east coast is rather obvious," ministry spokesman Sun Li-fang told reporters at the Hualien air base. "So we will adjust some of the air and naval elements given the typhoon situation."

Mandarin Airlines and Daily Air cancelled all domestic flights for Wednesday, while Eva Air announced at least 12 international flights were cancelled for the same day.

Gaemi passed by to the east of the Philippines but did not make landfall, though still brought heavy rain.

While typhoons can be highly destructive, Taiwan also relies on them to replenish reservoirs after the traditionally drier winter months, especially for the southern part of the island.

(Reporting by Walid Berrazeg; Additional reporting by Yimou Lee, and Neil Jerome Morales in Manila; Writing by Ben Blanchard; Editing by Michael Perry, William Maclean and Andrea Ricci)