Rai, a former winner on Asian Tour, is now six-under 136 for 36 holes. He is now tied eighth and is five strokes behind the leader.
Former Asian Tour number one Juvic Pagunsan of the Philippines fired a flawless nine-under 62 to charge into the second round lead.
The smooth-swinging Pagunsan reeled in nine birdies for his career lowest round. He leads by one shot on 11-under total of 131 at the Manila Southwoods Golf and Country Club, Legends course.
Janne Kaske of Finland stayed a further shot back in fifth place on his own while Japan's Masaru Takahashi (69) and Australian Paul Donahoo (66) are tied in sixth on 135.
Pagunsan, who won the Asian Tour Order of Merit in 2011, turned in 32 before romping home in 30 with birdies on holes 10, 13, 14, 17 and 18.
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