China's Liang Wenchong (70) and Thailand's Thaworn Wiratchant (71) were tied for first at 3-under 213.
Daly, winner of the 1991 PGA Championship and 1995 British Open, was at 214 with South Korea's S.K. Ho (69) in the $400,000 Asian Tour event. Daly made three birdies but was hurt by a double bogey on the ninth hole and a bogey on the 16th.
The LPGA's Laura Davies missed the cut Saturday by four strokes after shooting an 11-over 155. England's Justin Rose also did not make the cut with rounds of 76 and 77.
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