CP-PACS and JLQCD collaborations are carrying out a joint project of the 2+1 flavor full QCD simulation. Gauge configurations are generated for the non-perturbatively $O(a)$-improved Wilson quark action and the Iwasaki gauge action using PHMC algorithm at three lattice spacings, $asim 0.076$, 0.010 and 0.122 fm, with a fixed physical volume $(2.0 fm)^3$. We present analysis for the light meson spectrum and quark masses in the continuum limit, which are determined using data obtained from the simulations at the two coarser lattices. Our simulations reproduce experimental values of meson masses. The ud and strange quark masses turn out to be $m_{ud}^{bar{MS}}(mu=2 GeV)=3.34(23) MeV$ and $m_s^{bar{MS}}(mu=2 GeV)=86.7(5.9) MeV$. We also show preliminary results at our finest lattice spacing for which simulations are still being continued.