Zarate had 140 in two days while another Filipino Gerald Rosales had a 73 for 141 following a 68 in the first day. Philippine-based Canadian Rick Gibson had 69-70-139.
Former Thai soldier Thongchai Jaidees red hot putter gave him a three-shot lead at the halfway stage of the event as American John Daly crashed out in spectacular fashion.
Pre-tournament favorite Colin Montgomerie shot a solid four-under-par 68 to lie just three shots behind Thongchai, who carded a superb five-under-par 67 for 135.
Joining Monty at four under were American Bob May, Hendrik Buhrmann, South Korean first round leader Ted Oh and former European number one Lee Westwood.
However, Daly crashed out after racking up a horrendous 10 at the par-five 572 yard 14th hole en route to a horrendous 80 to finish at six-over par for his two rounds and miss the halfway cut by two shots. (AFP)