Absolutely not. First of all, there aren't any "races" of humans in most anime, this one included. Japanese entertainment isn't obsessed with "races" like the US. But lets say you're right and he's the only asian in this world full of caucasians. How come he never even mentions it? Not even a fleeting thought of "Hey everyone else is white, that's pretty strange." What he did say is that everyone looks beautiful. But I'll humor you even more, lets say he just didn't care. His parents are from this world, if they're white, he's white. His childhood friend looks identical to Toa (minus the hair color), so if Toa's white, that Japanese girl should also be white. So yeah, interesting theory, but it just doesn't make much sense.
Pretty sure he's just an average looking guy, but in this world where everyone is beautiful, he looks ugly by comparison. Well, that and the whole 'goddess cursing him to look repulsive to humans' deal. Notice how only humans get repulsed by him, others just think he looks average. Just like how he can only speak demi-human, his looks are probably also like a demi-human's in the eyes of humans, maybe something almost human to add that uncanny valley feeling, which would explain people's reactions.
Ep.11
I really liked how they resolved "that" incident. You rarely see anime protagonists behaving like actual people, with actual people feelings and reactions. We are very emotional, reactive creatures after all.
That said we got another instance of something very dark instantly getting downplayed by silliness, like they did in an earlier episode, which is a huge problem with a lot of anime nowadays. Honestly the only anime that did the whole 'switch from drama to humor' thing effectively was Gintama.
Still, I think this is one of the better anime this season, despite its generic genre.