(Updates with fatalities)

SANTIAGO, April 22 (Reuters) - Rescue teams found the bodies on Sunday of three people who died after a powerful earthquake shook southern Chile causing giant waves off the nation's southern coast.

"According to official figures, three fatal victims have been identified," Chile's government disaster center Onemi said in a statement.

Onemi said the victims were a couple and their grandson. Another seven people were still missing.

The 6.2 magnitude earthquake in Chile's picturesque Aysen region on Saturday panicked local residents and caused power outages and landslides.

Pictures in local newspapers on Sunday showed roads in the region split with large cracks down the middle.

The quake was the strongest of hundreds to have struck the region in recent months, and led to an emergency visit to the affected area by Chile President Michelle Bachelet.

The quake caused chunks of land to fall into the ocean, creating large waves, but not a tsunami, in an area where there are salmon farms.

"The earthquake on April 21st in the Aysen region generated landslides between Mentirosa Island and Rio Cuervo, pushing a mass of land into the sea and causing large waves that affected the coastal sectors and salmon plants in the Aysen fjord," Onemi said.

Residents of Santiago, were woken at dawn on Sunday by a 5.3 magnitude quake, but no damage was reported.

The length of Chile is prone to earthquakes.

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