Sunday July 29 12:35 PM ET

Typhoon Toraji Engulfs Taiwan, Shuts Markets

TAIPEI (Reuters) - Typhoon Toraji pounded Taiwan with torrential rain and driving winds on Sunday, forcing a shutdown of financial markets on Monday, and weather forecasters warned it was looking like the worst storm this year.

The storm had engulfed the entire East Asian island by the evening and its eye was expected to make landfall in coming hours, the Central Weather Bureau said.

Despite intensifying wind and rainfall, no major damage or casualties had been reported by the late evening.

Taiwanese financial markets will be closed on Monday, while government offices and schools in several cities, including the capital Taipei, will be shut as well, officials said.

The eye of the storm, if it stays on its current path, is likely to approach or directly hit the capital Monday morning.

At 10 a.m. EDT, Toraji was some 45 miles south-southeast of Hualien, on the eastern coast, and moving north-northwest toward Taipei at 11 miles per hour.

With winds of up to 87 mph and gusts of 115 mph per hour, Toraji threatened to bring chaos to Taiwan in the form of flooding, landslides and disruptions to air and road transport.

``The typhoon is expected to pose a serious threat to Taiwan between this evening and tomorrow afternoon,'' the bureau said.

The weather bureau warned residents to take extra care.

``All of Taiwan will see heavy or torrential rains, especially in the mountainous areas,'' it said.

Most flights to and from Taitung and Hualien as well as the outlying Orchid Island and Green Island had been canceled. But international flights were largely unaffected at last report.

State meteorologists issued land and sea warnings for southern and southeastern Taiwan on Saturday.

Toraji was the eighth storm to menace Taiwan this year.

Earlier this month, Typhoon Trami battered southern Taiwan, killing three people and triggering floods.

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