RPT-Nikkei powers to 8-mth closing high near 10,000

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* Nikkei hits eight-month closing high in active trade

* Resource shares lead market up as oil, copper strong

* Shippers surge on brokerage upgrades

* Hopes for China indicators an additional boost

By Elaine Lies

TOKYO, June 10 (Reuters) - Japan's Nikkei stock average rose 2.1 percent on Wednesday to come within a hair's breadth of the psychologically important mark of 10,000, as fresh funds flowed into the market on hopes for a recovery in the global economy.

Resource shares such as trading firm Mitsubishi Corp (8058.T) led gains on strong oil and metals prices while shipping lines surged after brokerage upgrades, helping the market shrug off an unexpected decline in machinery orders.

The Nikkei ended at fresh eight-month closing high and it has risen 42 percent since hitting a March 10 bear market low.

"There's a lot of general optimism and signs that the economy's improving over the longer term, and not really any reasons to sell at this point," said Hiroaki Osakabe, a fund manager at Chibagin Asset Management.

"Certainly there's still a gap between company profits and the rally we're seeing here on the Nikkei, but a lot of retail investors are coming back into the market now, and there's quite a flow of funds into stocks."

Buying interest was strong ahead of Friday's settlement of Nikkei futures and options, also helped by expectations that a slew of Chinese data due out later this week will show its economy is on the path to recovery.

Two Chinese newspapers reported that China's industrial production rose by 8.9 percent in May from a year earlier, well ahead of forecasts and the fastest growth since September last year. [ID:nPEK63329]

"If this is true, it certainly would prove to be quite a boost for the market," said Hideyuki Ishiguro, a supervisor in the investment advisory department of Okasan Securities.

The benchmark Nikkei .N225 rose 204.67 points in active trade to 9,991.49, its highest close since October 7. The broader Topix rose 2 percent to 937.01.

CONSTRUCTION MACHINERY STOCKS UP