The news agency said "terrorists" affiliated with the Kurdistan Workers' Party, or PKK, carried out the bombing in the town of Hani in the Diyarbakir region late yesterday.
Ambulances took wounded victims to the Diyarbakir Military Hospital, but the agency did not indicate how many people were hurt. The private Dogan news agency said some nearby buildings were damaged by the blast.
Turkey's southeast has witnessed a surge in violence since July when a fragile peace process between the state and Kurdish militants collapsed.
The military has carried out sweeping operations in the southeast, including in Diyarbakir, to flush out fighters linked to the outlawed PKK.
Turkey and its allies consider the PKK, which fought a decades-long insurgency against the Turkish state, a terrorist organisation.