By Yimou Lee and Ann Wang

KAOHSIUNG, Taiwan, Oct 4 (Reuters) - Southern Taiwan

worked on Friday to clear up damage from flooding and high winds

after Typhoon Krathon slammed into a major metropolis, while

most of the rest of the island resumed work and financial

markets re-opened.

Krathon, now downgraded to a tropical depression, made

landfall in the major port city of Kaohsiung, inundating streets

with water, blowing out windows in some buildings and sending

debris flying as record breaking winds hit.

While the rest of Taiwan resumed work on Friday, the

governments in Kaohsiung and neighbouring Pingtung county

declared another day off work to remove downed trees, pump out

flood waters and remove detritus from roads.

Kaohsiung Mayor Chen Chi-mai, writing on his Facebook page,

said some parts of the city got more rain than during the last

storm, Typhoon Gaemi, in July.

"Given the long duration of the storm, coupled with the

strong winds and heavy rain, the city government is doing its

best to repair the damage," he wrote.

Tsai Ming-an, a 51-year old engineer, was cleaning up his

house after flooding of about 20 cm (7.8 inches) came into his

entire house on the ground floor.

"I have never seen winds like that. It was so bad," Tsai

said.

Power remained down on Friday for 100,000 households, almost

all in Kaohsiung and Pingtung.

The fire department said the death toll remained at two,

both men killed on the mountainous east coast before the typhoon

made landfall, with one person missing and 667 injuries.

Taiwan's north-south high speed rail line re-opened, though

there was continued air transport disruption, with 13

international and 85 domestic flights cancelled.

The government also said it was investigating the cause of a

Pingtung hospital fire that broke out as the typhoon was bearing

down, killing nine people.