The Swedish team of Carin Koch and Sophie Gustafson, Japan's Ai Miyazato and Rui Kitada, Australia's Karrie Webb and Rachel Hetherington and Jennifer Rosales and Dorothy Delasin from the Philippines are tied for third place at 5-under-par 68.
Friday's format was better-ball with Saturday's action scheduled for alternate-shot or foursomes. On Sunday, each player from the team will play 18 holes of stroke play.
The Canadian team broke into red figures early Friday at The Links Course at Fancourt Hotel and Country Club. Kane drained a 30-foot birdie putt at the third, then added back-to-back birdies from the fifth to reach 3 under par.
Kane continued her strong play on the front nine when she played a 7-iron to 3 feet for birdie at the eighth. Coe-Jones helped the team at 10 and it looked like Kane was the one in position to post a score. Coe-Jones was in a bunker off the tee, but scrambled for a par when Kane three-putted the green.
'We kept the momentum going instead of falling back,' said Kane. 'Dawn makes a hell of a four, then I followed up and birdied the next one. That is what it was about today.'
Kane tapped in a 4-footer for birdie at the par-3 11th, then made it two in a row when she hit an 8-iron to 6 feet at 12. Kane collected her seventh birdie at the 15th, when she played a 5-iron to 10 feet to get her team into a share of first.
'I could have had a couple if she had given me a chance,' said Coe-Jones, referring to her partner's birdie run on Friday. 'I helped her twice. When she needed a par, I was there.'
The Italian duo split their birdies more equitably than their fellow co-leaders, but both found trouble at the ninth. Luna was in bad shape on the hole, but Sergas had 70 yards to the flag. She flew the green and the team left with a double bogey.
'I don't know what happened,' admitted Sergas. 'I was so excited that I just went for the pin. I hit it longer and lost control.'
Sergas rebounded with a birdie at 11, then the partnership combined for birdies on the last five holes to join Team Canada in first place.
'It was really good teamwork,' said Sergas. 'It was the team because we had maybe the same number of birdies.'
The American team of Beth Daniel and reigning U.S. Women's Open champion Meg Mallon shot a 4-under 69 on Friday. They are tied for seventh place with Mexico's Lorena Ochoa and amateur Alejandra Martin Del Campo, and Women's British Open winner Karen Stupples and Laura Davies from England.
Becky Brewerton and Becky Morgan of Wales combined for a 3-under-par 70.