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Zheng exits after a second-round loss to unseeded Siegemund, while former champions Sabalenka and Osaka battle it out.
Zheng Qinwen became the first big name to exit the women's draw at the Australian Open after the Olympic champion was stunned by Laura Siegemund, while top seed Aryna Sabalenka made a tough time of her second-round match before going through.
Jessica Pegula, who lost to Sabalenka in last year's US Open final, safely advanced while Tokyo Olympic champion Belinda Bencic advanced after a brief shower delayed proceedings on the outdoor courts on day four.
China's Zheng was hoping to emulate compatriot Li Na's 2014 triumph. at Melbourne Park, but her hopes evaporated at the John Cain Arena where unseeded German Siegemund produced a stunning 7-6(3), 6-3 victory.
The fifth seed left the court looking like she was about to burst into tears as world number 97 Siegmund beamed from ear to ear after a famous win.
“I knew I just had to play more of my best tennis — you've got nothing to lose, so I told myself to swing freely,” Siegmund said on court.
“She's an amazing player, she's one of the best players right now. But I know I can play and I wanted the fight to be tough.”
Zheng said it was just not her day.
“I had a lot of opportunities to break her in the first set, but you know, at that moment maybe my concentration wasn't there,” the 22-year-old said.
“At the same time, I felt she played very well. It's tennis, nothing more.”
Sabalenka was hoping to become the first woman to win three consecutive titles at Melbourne Park since Martina Hingis, from 1997 to 1999, and although the Belarusian defeated Jessica Buzas Maneiro 6-3, 7-5, she fell short.
After taking the first two games of the match at Rod Laver Arena, Sabalenka twice traded breaks with the world number 54 before taking control for a 5-2 lead and closing out the first set on serve.
The three-time Grand Slam champion's serve came under intense pressure in the next set and she found herself trailing 4-1 when an inspired Bouzas Maneiro began hitting stinging winners from both sides of the court.
Sabalenka found a spark from somewhere and fought back from 5-2 down to level at 5-5 and fired a backhand winner to break again in the next game before closing out the contest to extend her hard-court major tournament winning streak until 16.
“She played amazing tennis today and it was really tough,” Sabalenka said.
“I mean, I expected that tennis from her, so I'm really glad I was able to win that match.
“In the second set … I wasn't in a big rush after 5-2, I was like, 'OK, whatever, we're just going to leave this second set and move on. And yes, I was able to turn it around.
“I'm super happy to win in straight sets, especially against someone like her who makes you work for every point.”
American seventh seed Pegula beat Belgium's Elise Mertens 6-4, 6-2 on Margaret Court Arena, while Bencic beat Suzanne Lammens 6-1, 7-6(3) after Olga Danilovic stunned 25th seed Lyudmila Samsonova by 6-1, 6-2.
Former world number one Osaka, the 2019 and 2021 Australian champion but now unseeded, came back to beat 20th seed Karolina Muhova 1-6, 6-1, 6-3.
