Emails sent from China, Japan, Hong Kong via Microsoft in DMARC pass

G'day,

We have been working on improving our DMARC setup, with SPF & DKIM working we are now focusing on DMARC and using EasyDMARC to analyze/monitor our emails.

I'm trying to understand, why it shows emails from (what appears to be our domain) sending out from Japan, Hong Kong, China etc - passing but given we are in Australia why would Microsoft be routing emails via overseas servers.

Is this considered normal, or are these just spoofed senders impersonating headers? Because on the one hand, DKIM fails, but then passes on others.

I've checked our user accounts and can't see any overseas logins to indicate compromise, so I can only put this down to Microsoft relaying through some mail through overseas servers, OR people trying to impersonate our domain.

Am I interpreting this right?

EDIT: Screenshot https://imgur.com/a/mxKSdzr