Two off-road vehicles drove into a crowd in the regional capital Urumqi, with one of them exploding, Xinhua said, in what state-run media called the latest "serious terrorist incident" to hit Xinjiang, home to mostly Muslim Uighurs.
Two off-road vehicles drove into people at the market in the regional capital Urumqi, with one of them exploding, Xinhua said, the latest apparent violent incident in the far western region.
Pictures posted on Weibo, a Chinese equivalent of Twitter, showed victims lying in a tree-lined street, as others sat on flimsy stools.
Flames rose in the background, while other images showed smoke billowing over market stalls behind a police roadblock. None of the photographs could immediately be verified.
A witness at the market told Xinhua he heard a dozen "big bangs" during the incident, which happened at about 7:50am (0950 AEST), when Chinese morning markets, which usually sell fresh groceries, are commonly crowded with shoppers.
"There were multiple strong explosions in the morning market at the Cultural Palace in Urumqi," wrote one Weibo poster who said he was less than 100 metres from the scene.
"I saw flames and heavy smoke as vehicles and goods were on fire while vendors escaped leaving their goods behind."
All the injured had been sent to hospital, the Xinjiang regional government's web portal Tianshan said.
The vast, resource-rich far-western region has seen periodic violence which has increased and sometimes spread beyond it in recent months.
Beijing says it faces terrorism from a violent separatist movement there, driven by religious extremism and foreign groups.
Critics say the security threat in Xinjiang is exaggerated by Beijing to justify hard-line measures, and instead point to economic inequality and cultural and religious repression of Uighurs as causes of unrest.
On April 30, the final day of a visit by President Xi Jinping to the region, assailants armed with knives and explosives carried out an attack at a railway station in Urumqi, killing one person and wounding 79.
Two attackers also died.
The main plotter had formulated plans from abroad, then eight days before the incident ordered 10 people to make an explosive device and choose a target, Xinhua said in a later report.
In March attackers went on a stabbing spree at a railway station in the southwestern city of Kunming, killing 29 people and wounding 143 in an incident dubbed "China's 9/11" by state media.
Four of the assailants were shot dead by police.
In 2009 ethnic riots erupted in Urumqi between Uighurs and the country's majority Han Chinese, leaving 200 people dead and prompting a security crackdown.
China has dramatically increased the number of armed patrols on its streets in response to the spate of violent incidents.
Thursday's blasts came a day after state media reported that courts in Xinjiang jailed 39 people for offences including spreading "terrorist videos".
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