Massive earthquake in New Zealand causes extensive damage

Key couldn't rule out the number of fatalities rising. Police said one death occurred in the coastal town of Kaikoura, not far from the center of the quake, where a historic homestead collapsed. Television footage showed a huge landslide blocking a highway near Kaikoura, and Key said military helicopters have been dispatched to assist the emergency response there.

'Couple of billion dollars'

Prime Minister John Key, who flew over affected areas by helicopter, estimated the cost of the damage could run into a "couple of billion" dollars. He warned of the psychological impact of the quake, which was followed by dozens of  aftershocks.

Military personnel were flown by helicopter to the coastal town of Kaikoura to help with the clean-up, after a landslide blocked a local highway and one person was killed when a historic homestead collapsed. Engineers inspected buildings in the largely-deserted capital city for signs of damage and public transport was suspended until tracks, bridges and tunnels could be checked.

The kiwi dollar fell about half a U.S. cent in early trading to 70.8 U.S. cents, a one-month low, before paring losses to trade at 71.2 cents at 10:06 a.m. in Wellington. The country's benchmark stock gauge, the S&P/NZX 50 Index, climbed 0.6 percent, while Tower Ltd., an insurer, slumped 4.7 percent.

"The dollar has sold off a little on the back of it and we'll see a bit of downside for stocks," Grant Williamson, the director and chief financial officer at Hamilton Hindin Greene, a Christchurch-based brokerage, said by phone. "There's quite a bit of infrastructure that has been seriously damaged," though "Christchurch has got off pretty lightly from what I can see," he said.

Christchurch, a city of about 366,000 residents, is still recovering from a 2011 quake that killed 185 people and destroyed the central business district. New Zealand sits on the Pacific Ring of Fire, a belt of volcanic and seismic activity that rings the Pacific Ocean.

Tsunami warning

The Ministry of Civil Defence and Emergency Management issued a tsunami warning for all southern coastal areas, prompting evacuations in some regions, but it was scaled back after six hours. Residents along the northeast coast of the South Island were told to keep clear of beaches and away from the water.

The seismic monitoring agency GeoNet said it appeared the nation had been hit by "two separate but related quakes" — with the shaking lasting around two minutes.

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Debris from a building lays on the ground in Wellington, New Zealand. (Mark Mitchell/New Zealand Herald via AP) 

'Terrified and alone'

Speaking to Radio New Zealand, Key warned of psychological as well as physical damage from such a big earthquake, saying "it just drains the emotional energy away from people."

"The one thing we say to New Zealanders at the moment is stay close to your family and friends, make sure you listen to the radio, and if you do have older neighbors or family, if you can go and just check up on them that would

Authorities in Wellington strongly urged residents who work in the city to stay home, the New Zealand Herald reported on its website. Rail and bus services were suspended until tracks, bridges and tunnels could be checked. A number of major buildings showed "signs of structural stress," Wellington Regional Civil Defense Controller Bruce Pepperell told the newspaper.

Radio New Zealand said there are reports of damage to buildings around the country, and schools from Christchurch to Wellington have been closed until safety checks are completed.

"This was a very big event and we've seen several big aftershocks," John Townend, an associate professor of seismology at Victoria University in Wellington, told Radio New Zealand. "With big earthquakes you trigger aftershocks nearby, and can also trigger other earthquakes within several hundred kilometers or even further afield."

Damage coverage

New Zealand's Earthquake Commission (EQC) covers the first $100,000 of damage to residential properties and land, and up to $20,000 for damaged contents, according to AIR Worldwide. Private insurers cover damage beyond that level.

Commercial property damage is not covered by the EQC. However, because the earthquake occurred in a sparsely populated area of New Zealand, the total insured value of commercial and industrial exposure is estimated to be relatively low. 

More photos…

A large fissure runs along Kaikoura Road about two hours north of Christchurch , after a major earthquake struck New Zealand's South Island early Monday. The powerful earthquake struck in a mostly rural area close to the city of Christchurch but appeared to be more strongly felt in the capital, Wellington, more than 200 Km (120 miles) away. (AP Photo / Joe Morgan) 

The truck loading ramp at the Interisland Ferry wharf lays dropped and broken, in Wellington, after a major earthquake struck New Zealand's South Island. (Ross Setford/SNPA via AP)

Groceries litter the aisle at the New World market in the Miramar area of Wellington, New Zealand, after a major eathquake. (Ross Setford/SNPA via AP) 

A paved road is lifted at the ports in Wellington, New Zealand, Monday, Nov. 14, 2016, following an earthquake. Emergency services warned people along the coast to move to higher ground to avoid tsunami waves. (Mark Mitchell/New Zealand Herald via AP) 

A rail line is covered by a landslide near Conway in Kaikoura, New Zealand, following a powerful earthquake. (David Alexander/SNPA via AP) 

Damage is seen on a section of state highway 1 near Kaikoura, New Zealand Monday, Nov. 14, 2016 after a powerful earthquake. (David Alexander/SNPA via AP) 

A landslide covers a section of state highway 1 near Kaikoura, New Zealand. (David Alexander/SNPA via AP) 

The walls of a historic church were damaged after the earthquake in Waiau, New Zealand. (Mike Scott/New Zealand Herald via AP) 

Mary Kimber stands in her kitchen following the earthquake in Waiau, New Zealand. (Mike Scott/New Zealand Herald via AP)