Taiwan suspends stock trading due to Super Typhoon Kong-Rey

Taiwan A powerful typhoon will suspend trading on the US$2.5 trillion stock market on Thursday, October 31, as it moves towards the archipelago.

Super Typhoon Kong-Rey intensified as it passed the Philippines and moved toward Taiwan, where it is expected to make landfall Thursday afternoon. The storm has maximum sustained winds of 125 knots (232 km) per hour, according to the U.S. Navy’s Joint Typhoon Warning Center. This makes the typhoon equivalent to a Category 4 hurricane.

Taipei will also close offices and schools, according to the government announcement.

The suspension of stock trading will be the first since 2015, when the stock market was closed three times a year due to typhoons. Krathon this month and Gaemi in July led to pauses. Neighboring Hong Kong ended its decades-long practice of shutting down markets during storms in September.

The last typhoon of similar strength to directly hit and track Taiwan this late in the year was Gilda, which hit in mid-November 1967, according to data from the island’s weather agency. In 2007, Krosa, which was of similar intensity, cut across the northeastern part of the island before moving towards the Chinese mainland.

Fueled by warm sea surface temperatures and low wind shear, Kong-Rey underwent rapid intensification; It is classified as winds gusts of 55 km per hour or more within 24 hours. More than 200 mm of rain is falling on parts of the northern Philippines, days after Tropical Storm Trami caused widespread flooding on the main island of Luzon.

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According to Taiwanese officials, cruises on 12 routes and many domestic flights have been canceled. Taiwan Coast Guard also rescued 17 crew members on the Chinese cargo ship overnight after the ship was hit by Kong-Rey’s strong winds.

Earlier this month, Krathon lingered on Taiwan’s southwest coast for days before making landfall, dropping record amounts of rain and causing agricultural losses of about NT$650 million (S$26.9 million).

Additional rainfall from Kong-Rey on already waterlogged lands could increase the risk of floods and landslides. Some mountainous areas could see temperatures rise up to 1,200 mm by Friday, Taiwan’s Central News Agency reported, citing the local weather agency.

Taiwan Centers for Disease and Control warns of increased risk of melioidosis; The spread of the infectious disease is further exacerbated by the washing of bacteria from contaminated soil by heavy rains.

After making landfall, Kong-Rey is expected to weaken slightly as it moves northwestward across Taiwan and then re-emerge in the Taiwan Strait. From there, it could curve into the East China Sea and head towards the southeastern Chinese province of Fujian, according to the Hong Kong Observatory.

Parts of Zhejiang province, a manufacturing and technology hub, will receive up to 200 mm of rain in 24 hours starting Thursday morning, according to the China Meteorological Administration. The Shanghai municipal government has warned that the city could see its heaviest rainfall since 1981.