Michael Redd scored 21 points for the Bucks, who lost despite hitting 11 of 19 3-pointers (58 percent).
The Rockets grabbed a double-figure lead early in the third quarter and led by as many as 16 in the second half. Rookie Vassilis Spanoulis scored all of his 10 points in the fourth quarter to help Houston maintain its lead.
Scott Padgett's 10 points, including two 3s in the third quarter, helped Houston stretch the lead to 89-76 after three.
A 13-0 run, which included a pair of 3s by Steve Novak, lifted the Rockets to a 44-38 lead midway through the second quarter. Yao had 18 points and seven rebounds, and Novak had 13 points as Houston led 60-51 at halftime.
A night after beating the Mavericks at Dallas, Houston looked sluggish in the first quarter. With Tracy McGrady and Shane Battier out resting, the Rockets fell behind 15-4 as they missed seven of their first eight shots and committed six turnovers in the first five minutes.
Redd had 13 of those 15 points as he hit his first five shots, including three 3s.
Houston's 10 turnovers helped Milwaukee take a 30-26 lead after one quarter.
Bucks guard Mo Williams sat out the game with a right thumb sprain. He is listed as day-to-day.