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.

Schools, offices and financial markets closed as a weakened Typhoon Krathon approached the west coast of Taiwan. It is expected to hit the port city of Kaohsiung before moving towards capital, Taipei.