SHANGHAI: Tiger Woods stormed into a share of the lead with Nick Watney at the WGC-HSBC Champions on Friday, as Phil Mickelson charged up the leaderboard to be one shot behind.

The world number one birdied the last for a round of 67 to be 10-under-par for the tournament on 134, alongside fellow American Watney who added a 70 to his opening 64.

Mickelson, who won here in 2007, was on fire, stroking a majestic bogey-free 66 for a share of second place with Spain's Alvaro Quiros (66) and another American Ryan Moore (69).

Anthony Kim was a shot further back, ahead of US PGA Tour player Pat Perez on six under.

Two-time runner-up Woods survived finding trouble off the first tee to birdie his opening hole but then missed decent chances to pick up more shots before a bogey on the par-3 sixth.

But he drilled another birdie on the ninth and when he sunk a 12 footer on the 13th, he was closing on Watney.

Woods then produced a piece of magic at the 15th when he chipped in from a steep angle in the rough for a birdie and capped his day with a tap in to pick up another shot on the last.

He was frustrated at missing so many early chances but pleased with the way he finished.

"Well, it was certainly a little bit frustrating. So I knew that if I could just basically play the back nine at three-under par, which would be three-under for the day, I figured that would be a good number," he said.

"And I did a couple better than that."

He added that the pin placements were tough, but opportunities for a low score were there.

"I was surprised at how difficult the pins were. Consequently, the guys didn't go as low, but still there were plenty of opportunities out there."

First round leader Watney struggled with his short game, but birdies on the final two holes kept him in the hunt.

"I played very well again, the main difference today was my putter," said Watney, who won the Buick Invitational this year to qualify for Shanghai, a World Golf Championship event pitting winners from the world's PGA Tours.

"Today I struggled with my putting and to finish with two birdies was a bonus."

Asked how he would deal with Woods and Mickelson, he said he would just focus on making birdies.

"I knew from the start that Tiger and Phil were in the field and it's no surprise to see them playing well. I need to go out and keep making birdies to have a shot at winning."

Mickelson said on Thursday he needed a round in the mid-60s to get himself into contention and he delivered just that, sinking six birdies to position himself perfectly for the weekend.

"I'm pleased with where I put myself after two rounds," said the world number two.

"There's a lot of guys up there and I'll need to play very well on the weekend, But I'm in a good position. I like this tournament a lot and I like this golf course a lot."

Taiwan's Lin Wen-Tang set the early pace, picking up five shots in his opening nine holes for the outright lead before a bogey on the 10th and a double bogey at the next saw him drop down the leaderboard.

Lin, who defends his Hong Kong Open title next week, ended at five-under for the tournament.

Ernie Els improved his chance of making an impact with a hole in one at the sixth after judging an 198 yard six iron to perfection.

The South African, who is looking for his first win of the year, followed it up with four birdies before dropping three shots to leave him seven off the pace.

Spain's Sergio Garcia hit a 70 to go with his first round 75 to be 11 behind Watney, leaving him with no hope of successfully defending his title.