SYDNEY — Australia's benchmark share index inched higher on Monday, clawing back a fraction of last week's steep losses as falling oil prices and a rebound on Wall Street gave investors reason to step back into the market, even as trading remained thin and cautious.

The S&P/ASX 200 was up 18.2 points, or 0.21%, to 8,759.4 by late morning Sydney time, building on a modest gain at the open after futures had pointed to a 0.2% higher start to the session. The move offered only partial relief after a bruising week in which the index shed roughly 3%, its worst weekly performance in six months, as surging crude prices and rising bond yields hammered sentiment.

Friday's session had set the tone for the pullback, with the ASX 200 falling 0.9% to close at 8,741.2 points, its lowest level in seven weeks and a fourth consecutive daily decline. The retreat was driven largely by concern that a spike in oil prices would complicate Australia's inflation outlook just as the Reserve Bank weighs further interest rate increases.

Those worries eased somewhat heading into Monday's session. Brent crude fell 2.8% to $104.61 a barrel and West Texas Intermediate dropped 2.4% to $100.05 a barrel in Friday night trading, according to data cited by market commentators, giving energy-sensitive sectors of the market some breathing room even as the pullback left crude prices........

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