KAOHSIUNG, Taiwan — A weakened and “weird” Typhoon Krathon slammed into southwestern Taiwan on Thursday, hitting the island with a storm that has killed two people so far and forced it to shut down for a second day with hundreds of flights grounded and financial markets closed.

Krathon made landfall as a much weaker category 1 typhoon around midday at the major port city of Kaohsiung. The government, though, still warned people to stay at home given torrential rain, strong winds and…