Hendry is tied with Korean Dong Kyu Jang and Tetsuji Hiratsuka, the trio one shot ahead of the field.
The leading Australian is the defending champion in this event, Brad Kennedy, who is two shots from the lead with South Australian Adam Bland one shot further back.
Hendry is in his second season on the Japan Tour after only just retaining his playing privileges last year but earlier this season he recorded his best finish in Japan when 3rd at the Tsuruya Open.
The 34 year old Auckland golfer currently leads the Australasians in 9th position on the Japan Tour money list
Other Australasians to make the cut are Steven Jeffress 43rd, with Stephen Leaney, Richard Tate and Matthew Guyatt tied in 56th position.