(For full coverage of Obama's Asia visit click [ID:nOBAMAASIA])

By Yoko Nishikawa

Nov 13 (Reuters) - U.S. President Barack Obama meets Japanese Prime Minister Yukio Hatoyama in Tokyo on Friday for a summit between the leaders of the world's two largest economies.

Below are questions and answers on economic policy issues affecting the two countries.

WHAT IS JAPAN'S POLICY ON THE YEN?

Soon after Japan's new government under Hatoyama took office in September, Finance Minister Hirohisa Fujii rattled foreign exchange markets by suggesting he favoured a strong yen. He later said he had never explicitly called for a stronger currency, after markets sent the yen soaring. [ID:nT337529]

But market players are not fully convinced Fujii has abandoned his view a strong yen would boost domestic demand as Tokyo seeks to wean the economy from export dependency.

U.S. Treasury Secretary Timothy Geithner said in Tokyo this week that he believed strongly in the need to maintain a strong dollar and that Washington was determined to get its budget deficit down. [ID:nT335432]

Tokyo has not intervened in the currency market since 2004, and Fujii has said competitive currency devaluation would ruin the world's economy. [ID:nTKB006520]