KAOHSIUNG, Taiwan -- Southern Taiwan worked on Friday to clear up damage from flooding and high winds after Typhoon Krathon slammed into a major port city, while most of the rest of the island resumed work and financial markets re-opened.

Krathon, now downgraded to a tropical depression, hit land in the southwestern city of Kaohsiung, inundating streets, blowing out the windows of some buildings and scattering debris amid record-breaking winds.

While the rest of Taiwan resumed work, Kaohsiung and neighbouring Pingtung county declared a fourth successive day off work as they scrambled to pump away floodwaters, remove fallen trees, and clear roads.

"We hope as fast as possible to resume transport, water and electricity supplies, so work and life can get back to normal," Kaohsiung Mayor Chen Chi-mai told reporters.

The city said it was tackling more than 2,000 trees that had fallen on roads, but reported only two injuries.

Workers used cranes to remove downed trees and traffic signs in Kaohsiung, a city and surrounds of 2.7 million people, with some roads blocked, forcing diversions of traffic and pedestrians.

"Sandbags didn't work. The wind pressed the water in anyway," said Clark Huang, 49. "Fortunately it lasted only a couple of hours and then we started cleaning up."

Engineer Tsai Ming-an was cleaning up his home after floodwaters about 20 cm (7.8 inches) high washed through the entire ground floor.

"I have never seen winds like that," said the 51-year-old. "It was so bad."

Typhoons almost always hit Taiwan's mountainous and sparsely populated east coast which faces the Pacific Ocean, but Krathon, unusually, struck its flat west coast.

Nearly 100,000 households, almost all in Kaohsiung and Pingtung, still had no power on Friday, while 129,000 households in Kaohsiung lacked water supply.

The fire department said the death toll remained at two, both men killed on the east coast before the typhoon made landfall, with one person missing and 667 injured.

Taiwan re-opened its north-south high speed rail line, as well as most ordinary rail routes except for two branch lines, but disruptions to air transport continued, with cancellations of 15 international and 88 domestic flights.

Workers at Kaohsiung port were clearing some freight containers blown off their stacks to make sure operations went unaffected, the transport ministry said.

Kaohsiung airport suffered damage to two air bridges, while the airport on the outlying Orchid Island had landing aids washed away, though both remained open, the ministry added.

The Kaohsiung administration also said it was investigating the cause of a Pingtung hospital fire that broke out as the typhoon was bearing down, killing nine people.