What race is Naruto?

Answer 1

Asian (or Japanese to be specific)

He's a ninja, eats with chopsticks, wears sandals, speaks Japanese fluently, has a Japanese name, loves Japanese food, squints a lot, created by a Japanese man...

The hair/eye color doesn't matter because anime characters have unnatural hair colors like purple, pink, green, blue, etc... The rest of his features are Asian. His eye "shape" is a little narrowed, especially when he's serious. Also, his eyes are not "deep-set". In fact, he spends so much time squinting that it doesn't matter anyway. The world around him has a lot of Asian culture in it. They also probably wanted him to look different from the rest of the cast that has dark black hair/eyes: The whole Uchiha clan, the entire Hyuga clan(their whole respect thing is hardcore east Asian), the Sarutobi's, Ten-ten, Gai, Lee, Orochimaru, Shikamaru, Kurunai, etc etc...

Plus, he's more on the effeminate side just like Asians (and a lot of other anime characters). Whenever foreigners are depicted in anime, they're drawn in a overly stereotyped manner: exaggeratedly long/big noses, square jaws, loud/obnoxious... there's this entirely whole stereotype for how we look too, we just aren't used to it because we don't stereotype ourselves.

Examples: http://nogamineuro.wikia.com/wiki/David_Rice

http://www.YouTube.com/watch?v=jOTFEL4fjX4

http://www.youtube.com/watch?v=EtzlKJ1dObU

http://www.youtube.com/watch?v=qTm2tk1yzSI

Interestingly, an anime with a European majority, set in Europe, the characters are generally drawn exactly as Japanese characters would be drawn in an anime set in Japan, with no stereotyping. But the artist would make the foreign setting obvious through names, clothing, customs, architecture, and "props," rather than burdening every character with stereotyped racial features.