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Typhoon Nesat hit northern Philippines bringing strong winds and intensifying monsoon rains.
Manila Bay swelled and flooded a seaside boulevard stranding commuters.
Philippines financial markets were shut and schools and government offices closed due to the weather.
The category three typhoon made landfall in Aurora province, north of the capital with winds of 200 kilometers per hour as it hit.
In the low-lying eastern suburb of Marikina, water levels rose near the critical level of 18 meters.
Thousands of residents were forced to evacuate to higher ground.
[Mark Torres, Seaman]:
"It's getting deep, our house is already on high ground but the floods still reached it. I'm just moving (my scooter) out."
A school in the capital provided temporary shelter.
[Evelyn de Guzman, School Employee]:
"The waters are swelling more and more. Since it started raining yesterday, the floods just went up higher and higher, it's not subsiding."
Disaster management officials said seven people, including a 22 month-old boy had died in the storm.
Typhoon Nesat is forecast to exit the Philippines by Wednesday but bad weather conditions are expected for the next two days.