Typhoon Kaemi dumped heavy rains and unleashed strong winds on the northern Philippines on Monday as it headed for Taiwan, forcing the stock exchange, government offices and schools to shut down.
Some parts of the capital Manila were under several inches of water. There were no immediate reports of casualties.
The Philippine Stock Exchange suspended trading, while President Gloria Arroyo's office ordered that classes in Manila and affected provinces in the country's main island of Luzon be called off.
Kaemi, packing winds of 130 kilometers (81 miles) an hour and gusts of up to 160 kilometers per hour, was expected to make landfall early Tuesday in Taiwan, the state weather bureau said.
Two weeks ago, Tropical Storm Bilis left at least nine dead or missing after it triggered floods and flashfloods in the Philippines before wreaking havoc in China, where at least 530 people were killed.
