Chile's government urged residents to evacuate the coastline. The mayor of Illapel, which is near the epicenter, said on a radio broadcast that one person had been killed by a collapsing wall, and 15 others were reported injured. Some homes were damaged as well.
Reuters witnesses said the quake was felt as far away as the Argentine capital, Buenos Aires, on the eastern seaboard of South America.
The quake struck 105 miles (169 km) north of Valparaiso at a depth of 15.5 miles (25 km), and was originally reported as magnitude 7.9, the U.S. Geological Survey said.
Hazardous tsunami waves from the quake were possible along the coasts of Chile and Peru within the next several hours, the Pacific Tsunami Warning Center said. A tsunami watch was also issued for Hawaii.
Peruvian authorities said waves of less than 1 meter (3 feet) could hit the country's southern shoreline at 8:30 p.m. local time (2130 ET) and urged people to avoid coastal areas.