Japan, U.S. discussed econ, fiscal challenges-Kan

IQALUIT, Canada Feb 5 (Reuters) - Japanese Finance Minister Naoto Kan said on Friday he discussed with his U.S. counterpart the challenges the two countries face in their economies and fiscal policies.

"The United States faces roadblocks in terms of its economy and fiscal policy. Japan has similiar issues. The two countries both face the same kind of difficult problems," Kan told reporters after meeting with U.S. Treasury Secretary Timothy Geithner ahead of the Group of Seven finance leaders' meeting.

Asked whether he discussed foreign exchange with Geithner, whom he met for the first time since he assumed the finance minister post last month, Kan only said: "We exchanged views on various topics, which include some sensitive issues."

On whether the two talked about vehicle recalls by Toyota Motor Corp (7203.T), Kan said the bilateral meeting focused more on expected topics at the G7 rather than such individual issues.

Toyota has launched the recall of more than 8 million vehicles worldwide for two separate problems with the accelerator pedal not returning properly. One of the problems has led to five deaths in two incidents, according to U.S. safety authorities. (Reporting by Leika Kihara, Editing by Chizu Nomiyama)