CHRISTCHURCH EARTHQUAKE 2011

Christchurch Cathedral: The Landmark of the City

WELLINGTON (Dow Jones)--New Zealand's second-largest city Christchurch was rocked Tuesday by an earthquake that destroyed part of its cathedral, killing residents and trapping workers as offices and buildings collapsed.

The initial 6.3 magnitude quake hit 10 kilometers south-east of the city at 2351GMT according to the Ministry of Civil Defense and Emergency Management. The first quake was followed by aftershocks, including one measured at 5.6 magnitude. Tremors from the earthquake were felt as far away as the city of Dunedin, about 320 kilometers south of Christchurch.

A spokesperson for the local unit of Marsh & McLennan Cos. (MMC) told Dow Jones Newswires that its office building in Christchurch had collapsed, trapping many of its employees.

Sky News television footage earlier showed the collapsed spire of Christchurch Cathedral, a major landmark in the city, cracked roads and a number of badly damaged buildings. The city's international airport was closed indefinately following the quake, with the mayor asking residents to leave the area.

Police confirmed multiple fatalities in several parts of the city, including two buses crushed by falling masonry.

"Other reports include multiple building collapses, fires in buildings and persons reported trapped in buildings. All available police staff are assisting with evacuations and emergency responses," said the police in a statement. Sky News reported that emergency services in Christchurch have run out of ambulences to respond to the disaster and hospitals are being cleared across New Zealand to cope with the injured.

The earthquake comes nearly six months after a 7.1-magnitude earthquake struck the area in early September. Matthew Stevens, a geologist with GNS Science, said the earthquake was occurring in the same fault line as September's shock.

"This is technically an aftershock because it only happened because of the first earthquake," said Stevens.

The latest quake is another blow for New Zealand's economy and sent the currency, known as the Kiwi, sharply lower. The New Zealand dollar was trading down half a cent at US$0.7650, its lowest this week. The country's benchmark share index was slightly lower down 0.8% in afternoon trading. Christchurch continues to recover from the last quake which caused an estimated US$3.8 billion of damage.

"It was slightly more violent than the September quake," said Brent Collins, a resident of Christchurch, in a telephone interview with Dow Jones Newswires. "The time of the day, more than anything, means this one is way, way worse."

Prime Minister John Key has called an emergency cabinet meeting within hours of the quake hitting the city. Further destruction to Christchurch will add to Key's economic problems, with rebuilding costs expected to be high. The current account deficit that reached 5.93 billion New Zealand dollars (US$4.48 billion) in the year up to September and a decline in tourism income have added to the government's agenda.

"Some people are really freaked out about it," said Collins, an eyewitness. "Since September last year it has been pretty full on with loads and loads of aftershocks. it has been very unsettling."

By Rebecca Howard and Lucy Craymer, Dow Jones Newswires; 64-4-471-5990; rebecca.howard@dowjones.com

--James Glynn in Sydney contributed to this story.