Yang beats Hataoka on 18th hole to clinch LPGA Tour Championship
The Florida-based Yang carded a six-under-par 66 to complete a three-shot victory at the Tiburon Golf Club in Naples and earn the $2 million (£1.6m) first prize.
Hataoka had been at the top of the leaderboard since the opening round, and went into Sunday's sharing the lead alongside Yang after shooting a seven-under-par 65 on Saturday.
But after going through the first 54 holes of the tournament without shooting a single bogey, Hataoka finally blinked when it mattered most in Sunday's tense back nine shootout with Yang.
The two women were level on 25 under heading to the par-three 16th, and it looked as if they would remain tied at the top after Yang missed a long putt for birdie and the solo lead.
Yet Hataoka bogeyed after missing her short par putt to leave Yang one shot clear with two to play.
The Korean then turned the screw on the par-five 17th. Both players were left with tricky third shots after seeing their seconds miss the green.
Yang though produced a sublime third shot, her chip for eagle lipping out to leave herself with a short putt for birdie.
Hataoka's chip left her with an awkward birdie chance which she duly missed.
Yang coolly rolled in her birdie to leave her two shots clear going to 18, and from there she never looked like slipping up, nailing her second to within eight feet for another birdie chance.
Hataoka missed her birdie putt from off the green, giving Yang three putts from eight feet to seal victory.
In the end the world number 36 only needed one putt, rolling in the birdie to finish in style before being doused in champagne by friends and fellow players.
Yang finished with a 27 under 72-hole aggregate 261, while Hataoka was three back in second place alongside Alison Lee (28) of the United States, who shot a closing 66.
World number one Lilia Vu (26) finished six shots off the lead on 21 under for the tournament after a seven-under-par final round, with Thailand's Atthaya Thitikul (20) in fifth on 20 under after finishing with a six-under-par 66.