I personally always assumed everyone was Asian, with some notable examples like Barrett or Cid.

How come Cid is white but Cloud and Aerith are Asian???

As Z_Poster365 said, it's way better than the unrealistic, cartoonist way anime depicts Asian women. Obviously, neither is real. One is a video game and one is a cartoon of sorts so they have fantastical liberties I don't think should be denied them but this is great. The less men have some fantastical and unrealistic expectations of women the better. I mean, Tifa already is a bit of an unrealistic expectation in, uh, certain aspects, but I think this is generally a good way to depict Asian women who are love interests in a game mostly targeting and set within an Asian market.

Better they did this than pander to Western love interest tropes which for so long were necessarily some White, blue-eyed, blonde. I'd take a Rinoa over Trish (DMC) in a game any day.

I'm still not convinced Tifa, Rinoa or Garnet/Dagger/Sarah is supposed to look Japanese. Yuna from FFX reads as much more Japanese-coded to me because of her name but mostly because she's dressed like (and sort of is) a shrine maiden. She also looks very different from her immediate predecessors with shorter, lighter-coloured hair and heterochromic blue/green eyes.