The world’s financial leaders gather in Japan: What’ll be the big talking points?

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The stage is set in Japan for the financial leaders of the Group of Seven of the world's leading economies to discuss policy, global growth and cyber-security. G-7 finance ministers from Canada, France, Germany, Italy, Japan, the U.K and the U.S. have gathered in Sendai. But what's on the agenda?

"With the latest G-7 finance ministers meeting due to start today (Friday) in Japan, it is quite likely that the subject of currency levels and fiscal policy is likely to be high on the agenda, and while markets have settled down a bit since the G-20 meeting in Shanghai at the end of March it remains clear that financial markets are still on edge, due to the lack of progress amongst policymakers with respect to fiscal reform," Michael Hewson, chief markets analyst at CMC Markets said in his morning note.

Speaking to CNBC in a phone interview, Hewson said the financial consequences of a "Brexit" vote on market volatility will also be a top concern for G-7 members.

While issues like the upcoming EU referendum, global uncertainty and central bank monetary policy are expected to remain the big focus over the weekend, German Finance Minister Wolfgang Schaeuble has said the leaders are a lot more optimistic about the global economy than they were before.

"We agreed that the world economic environment is better than some feared a few months ago," Schaeuble told Reuters after the first round of talks, adding that Germany had growing room for room for fiscal manoeuvre which he is in favour of using in the next legislative period.

Some analysts have said that leaders will definitely touch upon the issue of central bank's role in the economy and the impact of low and negative rates.

"Some of the recent narrative from central banks in recent days is that low rate policies have helped create a culture of delay amongst politicians in implementing structural reforms," Hewson told CNBC.

"I expect this to be a familiar refrain along with the usual platitudes that monetary stimulus needs to run alongside structural reform, in order for the economic outlook to change significantly."

Among other things, currency wars will also be on the top of the list, as nations struggle due to heavy dependence on the U.S. dollar.

A U.S. Treasury Official told the press that there needed to be a distinction between disorderly moves that warrant intervention, referring to the yen spike and fluctuations in markets that happen.

"When there are truly disorderly conditions (in currency markets), you know," he was quoted as saying by Reuters.

The meeting is also expected to focus on enhancing cyber-security across countries as financial transactions are becoming more global and there is an increasing need for G7 leaders to take prompt action, sources told Reuters.

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