SYDNEY—The big winners from rising skittishness over the investment environment in China appear to be emerging markets such as India, the chief market strategist at financial advisory and asset-management firm Lazard said. Foreign direct investment in China shrank for the first time in 25 years during the latest quarter as Beijing and Washington sparred over technology deemed sensitive to national security and critical minerals used in electric vehicles. Tensions have intensified further since then, illustrated by U.S. officials tightening rules around the sale of artificial intelligence-enabling chips to China. Ron Temple, Lazard’s chief market strategist, said money flows appear to...