A volcanic eruption has caused residential evacuations in southern Japan as a cloud of ash blankets the region.

Mount Shindake, on the far southern island of Kuchinoerabu, erupted at around 10am today (11am AEST).

Footage of the eruption shows a sudden burst of ash and smoke shooting from the mountain.

Thick smoke and ash burst from the mountain and blanketed nearby villages. (Japanese Meteorological Survey)

The volcano lies around 80km south-west of the island of Kyushu. (Japanese Meteorological Survey)

The cloud reached as high as 9000m and was accompanied by a five-minute volcanic quake.

Around 130 people live on the island but there have been no immediate reports of damage or any injuries.

Kuchinoerabu lies around 80km south-west of the main island of Kyushu.

A local resident described watching the plume of smoke rise across the region.

"There was a really loud sound of an explosion, and then black smoke rose, darkening the sky," local village chief Nobuaki Hayashi told national broadcaster NHK.

"It smells of sulfur."

Other residents reported hearing "a big bang".

The plume of smoke could be seen from nearby islands. (Twitter/@takuyabluewhale)

The Japanese Meteorological Agency raised its warning level to level five - the top of its five-point warning system - and said evacuation was necessary.

Prime Minister Shinzo Abe said he had mobilised "all functions of government" to ensure the safety of residents, including coastguard boats and military helicopters.

"I ordered authorities to swiftly gather information on damage, ensure local residents' safety through evacuations, and boost observation of the volcano," he told reporters.

Japan sits at the junction of several of the Earth's tectonic plates and is dotted with active volcanoes.