The Islamists launched an attack on the town of Bama on Monday but came back in greater numbers overnight, the sources said.
Obama justifies his decision to carry out targeted airstrikes in Iraq to prevent ‘massacre of innocent people’.
Obama said the US may eventually do more to help Iraq repel the militant group, which seeks to control its own state.
The agency did not provide details or cite any reasons for the delay in reporting the news.
A health ministry spokesman, speaking on condition of anonymity, said at least six people were killed and 25 wounded in clashes.
An alleged middleman involved in sending workers to Iraq has claimed the abducted Indians “had a chance” to return before they were captured.
Says little harm if supply hit, asks PSUs to explore options.
The militants are linked to rebel groups, the Islamic State of Iraq and Sham (ISIS) in the Middle East and al-Qaeda-linked Abu Sayyaf.
It must reach out to Kurdish forces and prioritise protection of its core interests.
The officials say the provincial governor based in the city is missing.
A jihadist group called Ansar Beit al-Maqdis claimed responsibility for the suicide bombing of a tour bus in Egypt.
China has previously called some of the violence in the far western region of Xinjiang the work of Islamist militants.
China has stepped up its rhetoric against what it says is a threat the country faces from Islamist militants.
The forested area has become a favoured hideout for fighters of Islamist sect Boko Haram.
Suspect named as 30-year-old Naida Asiyalova