Smoke from a burning building fills the sky in the outskirts of Santiago after a huge 8.8-magnitude earthquake rocked Chile early killing at least 78 people, on February 27, 2010. [Xinhua]

At least 122 people have died in a massive 8.8 magnitude earthquake that struck southern Chile early Saturday, knocking out power and driving panic-stricken people into the streets.

President Michele Bachelet declared a "state of catastrophe" and said the death toll would rise.

"Without a doubt, with an earthquake of this magnitude, there will be more deaths," the president said.

The earthquake struck 320 km southwest of Santiago at a depth of 59.4 km 3:34 a.m. (0634 GMT), according to the U.S. Geological Survey (USGS).

The epicenter was only 115 km from Concepcion, Chile's second-largest city with a population of 200,000 people.

A Xinhua reporter said that, when the earthquake struck, he felt his house shaking and heard a squeaky sound for nearly 40 seconds. Shortly after that, electricity was disrupted and everything fell into darkness.

Telecommunications also were disrupted, with almost all telephone and mobile phone services down, the reporter said.

Many people in the neighborhood ran out to the street and waited to see what to do. Helicopters were seen hovering in the air.

Witnesses said some buildings collapsed, many others were damaged, bridges suffered a lot of damage, cars overturned.

Xinhua reporters based in Argentina also felt the earthquake strongly.

At least 25 aftershocks struck again, with the strongest ones measuring 6.9 and 6.2 magnitude.

Bachelet appealed from an emergency response center for Chileans to remain calm.