Taiwan shut down on Wednesday with hundreds of flights cancelled and 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.

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 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.