MANILA, Aug. 18 (Xinhua) -- Philippine soldiers exchanged fires with armed Muslim separatists in the south hours after two budget hostels were bombed, local media reported Monday.

　　The military said the gun battle began at past 4 a.m. Monday after armed men forcibly took over a highway in Kauswagan town of Lanao del Norte province, local Tv network ABS-CBN News said.

　　The report said scores of people were seen escaping for safety while the highway was closed and houses were reportedly set on fire.

　　The clash erupted after blasts hit two local inns in Iligan City of Lanao del Norte on Sunday afternoon. No group has claimed responsibility for the explosion so far.