A bomb explosion hit the diplomatic area of Afghan capital Kabul on Saturday morning, and no casualties were reported, a police officer told Xinhua.

The officer, who declined to be named, said the bomb, planted in a garbage box, was designed to make a big noise to create fear among the public.

In a message marking the Muslims Eidul-Adha festival on Friday, Afghan President Hamid Karzai renewed his call for the Taliban and other insurgents to lay down weapons.

"I once again call upon our brothers, the Taliban, Hezb-e- Islami and everyone who is away from their land and who have taken up arms against their soil, to come back to their country for peace, stability and prosperity," he said.

Karzai's call for reconciliation came two days after Taliban leader Mullah Omar rejected his call for peace talks.

The Taliban have consistently rejected calls for talks with the Afghan government, insisting that foreign troops must pull out of Afghanistan before any negotiation.

Next week, U.S. President Barak Obama is expected to announce whether he will send up to 40,000 more U.S. troops to Afghanistan. There are already around 110,000 foreign troops in Afghanistan, including 68,000 Americans.