Flinging the nastiest, most vile, brutal and if possible, racist insults at each other is a typical bonding experience for males aged 12 to a year past the grave in Australia.
Your mate over-reacted. The joke was tame as compared to the stuff I used to get flung at me for having such a mixed genetic heritage that the dna became so flawed I could only end up white.
God I miss my university days. There's nothing quite like drinking mexican liquor, dutch beer and irish whiskey with a south african, a german, a jamaican, a spaniard, three scots, a dane and a columbian while discussing the finer points of token ring networking and whether the borg could adapt to the force.