Ernie Els, the defending champion, posted a six-under 64 to move into third place at nine-under-par 131. Luke Donald posted his second straight 66 and is one shot behind Els.
Michelle Wie posted a two-under 68 Friday at Waialae Country Club, but missed the cut by one stroke. Wie finished the event at even-par 144, one stroke over the cut of one-under-par 143, which included 79 players.
Wie, who became the youngest woman to play in a PGA Tour event, needed to chip in for eagle on the 18th hole to make the cut. However, her pitch came to rest within five feet of the cup and she settled for birdie.
The 14-year-old showed some nerves during the second round, losing several drives to the right, but managed four birdies during the round.
Wie, who played once on the Nationwide Tour and once on the Canadian Tour last year, struggled out of the gate as her tee ball found the right rough, which led to an opening bogey. She nearly came right back with a birdie at the second, but her birdie try lipped out.
She rolled in a birdie putt from over 50 feet out at the seventh to climb back to even-par for her round.
Wie, who became the youngest USGA champion ever when she won the U.S. Women's Amateur Public Links title last year, then drained a 53-footer for birdie on No. 11 to get to one-under on the day. She missed the fairway to the right on 13, which led to her second bogey of the day. At the 14th, she left a birdie putt hanging on the lip.
Wie, needing to birdie her final three holes, dropped her second shot from 117 yards out to 17 feet at the 16th to set up her third birdie of the day. However, she missed the green at the par-three 17th, but managed to make par.
Heading to the par-five closing hole, Wie needed an eagle to advance to the weekend. Her second shot came up short of the green in the left rough. Her pitch shot rolled past the cup and came to rest about five feet past the hole. She knocked that in for birdie to finish at even-par 144, alongside 2003 major champions Jim Furyk and Ben Curtis.
'My day went pretty well,' said Wie. 'I started off with a bogey. I was like, 'Oh, no, I started off bogey.' My first couple of holes today, my ball was a wimp. He wouldn't listen to me. But I changed balls after two holes and he listened to me very well. I just told him to go in and he would go in. I had about a 54-footer for a birdie and it went in. I made two really long putts. I think I played really great today. Just one more shot and I would have made it, and it's killing me now.'
Allan, who opened the day at three-under, came bursting out of the gate with three consecutive birdies. He remained hot on his opening nine with birdies at the 15th and 18th to get to eight-under.
On the front nine, Allan ran off six straight pars to open the side. He got to minus-nine after dropping an eight-iron within seven feet at the seventh for his sixth birdie of the day.
Allan closed in fine fashion. He dropped a six-iron some 30 feet from the cup on the par-five ninth. He calmly rolled home the eagle putt to grab a share of the course record, set last year by John Cook and Charles Howell III, and matched later in the day by Frank Lickliter II.
'I think my putting has been particularly good,' said Allan, whose best PGA Tour finish was a tie for second at the Greater Milwaukee Open in 2003. 'Both days I've played well for nine holes and then scrapped it the other nine.
'I really got up-and-down very well. I think that really held my round together today. I missed the green on 17, but I got it up-and-down. Then four up-and-downs in a row to start the front side, you could easily have made two or three bogeys there. I think my short game has really been great.'
Frazar carded four birdies on the front nine, before closing with three birdies over the final four holes.
'Yeah, I am happy. Really didn't know what to expect coming in here,' said Frazar. 'I'm trying really not to pay too much attention to it. I didn't necessarily feel great coming into this week golf-wise. My golf game was rusty and I was still hitting some bad shots.'
Lickliter's 62 moved him to seven-under-par 133. He shares fifth place with Paul Azinger, Pat Bates, Fred Funk, Robert Gamez, Jerry Kelly, Jesper Parnevik and Hideto Tanihara.
Carlos Franco, the first-round leader, struggled to a two-over 72. He stands at five-under-par 135 and is tied for 18th.