* Resource stocks up on higher oil prices amid economy hopes
* Shippers jump on brokerage upgrades
TOKYO, June 10 (Reuters) - Japan's Nikkei average rose 1 percent on Wednesday, buoyed by resource shares such as trading firm Mitsubishi Corp after oil prices hit a seven-month high above $70 a barrel amid hopes for a recovery in the global economy.
Shipping firms surged, with Mitsui O.S.K. Lines rising 5 percent after brokerage upgrades for the sector and individual companies, saying their current share prices appeared undervalued.
"Those that sold heavily on the view that the global economy was falling into an abyss are now buying back, as more people think that it hit a bottom in January-March," said Kenichi Hirano, operating officer at Tachibana Securities.
"I wouldn't be surprised if the Nikkei touches the 10,000 level soon, but we need proof of a recovery in the real economy before it can go beyond that."
The benchmark Nikkei added 95.53 points to 9,882.35, in sight of the eight-month intraday high of 9,914.07 hit on Monday.
The broader Topix gained 1.2 percent to 928.91.
Machinery stocks such as Komatsu Ltd advanced, even after data showed Japan's core machinery orders unexpectedly fell 5.4 percent in April, suggesting any recovery in capital expenditure is still fragile.
"The orders data doesn't undermine the view that Japan's economy has bottomed out and exports are showing signs of recovery," said Chotaro Morita, chief fixed-income strategist for Japan at Barclays Capital.
"But given that capital spending will likely remain low due to oversupply and a cautious corporate outlook for investment, the orders data suggests that the economic cycle of exports leading to production, spurring investment and consumption may be weaker this time than usual."
TRADINGS FIRMS, SHIPPERS HIGHER
Energy-related shares gained on higher oil prices after data showing a steep drop in U.S. crude inventories and a U.S. government report revised global demand expectations higher.
Mitsubishi climbed 3.6 percent to 1,943 yen and Mitsui & Co gained 1.5 percent to 1,275 yen. Oil and gas field developer Inpex added 2.7 percent to 827,000.
Shipping firms gained. Mitsui O.S.K. Lines jumped to 688 yen, Nippon Yusen gained 3.7 percent to 453 yen and Kawasaki Kisen shot up 5.5 percent to 445 yen.
Credit Suisse hiked its rating on the shipping sector to "overweight" from "market weight," saying earnings are likely to bottom in the current financial year.
Shares of earth-moving equipment maker Komatsu Ltd rose 1.6 percent to 1,555 yen, while rival Hitachi Construction gained 1.4 percent to 1,705 yen. (Reporting by Aiko Hayashi; Editing by Edwina Gibbs)