The benchmark S&P/ASX200 index gained 14.1 points on Monday, or 0.18 per cent, to 7962.3 as markets closed, while the broader All Ordinaries gained 13.2 points, or 0.16 per cent, to 8191.7.
The tentative comeback came after the ASX200 fell to a six month low of 7948.2 on Friday, representing a 7.5 per cent drop, or $210 billion wiped from the exchange since February's all-time-high of 8615.2.
Monday's bounce had been expected after the Aussie index strayed deep into oversold territory, said Jessica Amir, market strategist at trading platform Moomoo.
"Secondly we had a boost in sentiment from the US Federal Reserve at the weekend, basically saying the US economy is in good shape, and inflation is pretty much close to target," she told AAP.
"That means there's more of a likelihood of interest rate cuts this year in the US."
Investors would be looking for signs of continuation for the ASX after Monday's bounce, and later in the week towards earnings for IT giants Adobe and Oracle for signs of strength in US tech to continue fuelling Wall St markets.
Seven of 11 ASX sectors finished in the green and it was the local bourse's first positive finish since March 3.
Energy stocks led the gains, clawing back 1.5 per cent after leading the losses last week when it sunk 7.5 per cent.
Of those, coal miners Yancoal and Whitehaven surged 2.5 per cent and 3.5 per cent respectively, after import volumes in China lifted two per cent year-on-year.
Materials were the second best performing sector, up 0.8 per cent, with Rio Tinto rallying three per cent to $118.71 after its board scrapped plans for a $5 billion share sale.
Gold miner Spartan was the best performer on the ASX, up 6.3 per cent to $1.51.
Uncertainty is still weighing on risk sentiment, with new 25 per cent US tariffs on steel and aluminium imports set to take effect on Wednesday and a weaker-than-expected inflation print from China fuelling demand concerns in the world's second largest economy.
The Australian government has lobbied the US for an exemption to the planned tariffs, so far without luck.
Last week President Trump imposed 25 per cent tariffs on Canada and Mexico, and raised duties on goods from China, before partially delaying the north American taxes until April, whipsawing markets and putting pressure on the US dollar.
The US dollar index, which weighs the strength of the greenback against a basket of currencies, is down more than 3.5 per cent for March.
The Australian dollar has held fairly steady and is buying 63.14 US cents, up from 63.06 US cents at 5pm on Friday.
ON THE ASX:
* The benchmark S&P/ASX200 index on Monday gained 14.1 points on Monday, or 0.18 per cent, to 7962.3.
* The broader All Ordinaries was up 13.2 points, or 0.16 per cent, to 8191.7.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 63.16 US cents, up from 63.01 US cents at 5pm AEDT on Friday
* 93.22 Japanese yen, from 92.95 yen
* 58.29 euro cents, from 58.27 euro cents
* 48.94 British pence, from 48.90 pence
* 110.42 NZ cents, from 110.29 NZ cents
25°C