Aug. 21 (Bloomberg) -- Hong Kong raised Strong Wind Signal No. 3, the second lowest on a scale of five, as Typhoon Nuri approached the city after leaving at least seven people dead in the Philippines as it pounded the northern island of Luzon.

The eye of Nuri, the 13th storm of the northwestern Pacific cyclone season, was 300 kilometers (186 miles) southeast of Hong Kong at 9 p.m. local time, the Hong Kong Observatory said after raising its signal from No. 1, the lowest on the scale. Nuri isn't expected to approach the city until tomorrow, a day after the final Olympic equestrian events are held there.

Nuri's winds slowed to 128 kph after the storm lost power crossing the northern tip of Luzon yesterday, the U.S. Navy Joint Typhoon Warning Center said on its Web site. It is forecast to gain strength as it moves over the warm waters of the South China Sea and approaches the Chinese coast between Hong Kong and Shantou in Guangdong province.

Hong Kong's government urged all small boats and fishing vessels to return to land as soon as possible and for residents in the city to stay away from the shoreline and out of the water, and ensure windows and doors are secure and drains and gutters are clear.

Cathay Pacific Airways Ltd. and its unit Hong Kong Dragon Airlines Ltd. said flights may be disrupted tomorrow because of the typhoon. Flights could be delayed or canceled and the airline's Internet check-in service has already been suspended, the Hong Kong-based carriers said in a statement.

Warning to Ships

The typhoon was moving west-northwest at 14 kph toward Guangdong province and is forecast to be ``rather close to Hong Kong'' tomorrow, and the possibility of raising the No. 8 signal ``cannot be ruled out,'' the Observatory said. Shools and financial markets close on Signal 8.

Signal 8 means gale or storm force wind is expected or blowing at 63 kph-117 kph and gusts may exceed 180 kph. Hong Kong uses five levels of storm warning: No.1, No. 3, No. 8, No.9 and No. 10.

Taiwan's Central Weather Bureau maintained its sea alert to warn ships and fishing boats in the South China Sea of the approach of Nuri, according to its Web site.

Organizers of the equestrian events today in Hong Kong said they are monitoring the storm. The individual jumping finals began as scheduled at 7:15 p.m. local time.

Hong Kong is frequently hit by typhoons and tropical storms during the northern hemisphere's summer. Tropical Storm Kammuri pummeled the city earlier this month, forcing schools and markets to close and causing delays in the delivery of horses for the Olympics.

Seven Die

Kammuri left 119 people dead in Vietnam after it passed through Hong Kong and China, where at least 40 died from flooding caused by the remnants of the storm.

Seven people including three children died yesterday across central and northern Luzon in the Philippines as Nuri swept across the island, the country's National Disaster Coordinating Council said on its Web site.

In Manila, heavy rain caused flooding in some areas around the capital, Metro Manila Development Authority General Manager Robert Nacianceno said in a telephone interview yesterday.

Typhoon Fengshen, which slammed into the eastern island of Samar in June, left 730 people dead and 637 missing, according to the country's disaster council.

Nuri is the name of a blue-crowned parakeet in Malaysia, according to the Hong Kong Observatory, which lists names used for tropical storms and typhoons formed in the northwest Pacific.

To contact the reporter on this story: Aaron Sheldrick in Tokyo at asheldrick@bloomberg.net.

Last Updated: August 21, 2008 09:50 EDT