Lan downgraded to a tropical storm, makes its way back over open water in the Sea of Japan, but not after leaving plenty of damage in its wake. (Joint Typhoon Warning Center)

8 p.m. Tuesday, Aug. 15, Japan time: Lan has been downgraded to a tropical storm and is making its way back over open water in the Sea of Japan (East Sea).

But not before it battered the Kansai region of central Honshu island, paralyzing public transportation, causing flooding, landslides and power outages, mainly in Osaka and Kobe, at the peak of the summer Obon season..

At 3 p.m., Lan was 176 miles east-northeast of Marine Corps Air Station Iwakuni, headed northwest at 14 mph, packing 58-mph sustained winds and 75-mph gusts at center.

Joint Typhoon Warning Center forecasts Lan to curve northeast over the Sea of Japan, pick up forward speed and pass 288 miles northwest of Misawa Air Base as a tropical storm as it heads over cooler waters.

Japan Air Lines and All-Nippon Airways reported a combined 566 domestic flights serving Kansai area airports canceled due to Lan. High-speed Shinkansen rail traffic between Okayama and Nagoya was suspended throughout Tuesday, and service between Tokyo and Nagoya was limited.