Market pullbacks are never pleasant, but they are a normal part of investing.
A 10% decline in the share market can feel dramatic in the moment, yet history shows these corrections occur regularly. For long-term investors, they can also create opportunities to buy high-quality Australian shares at more attractive prices.
If the ASX were to fall by around 10%, I would focus on buying companies with strong businesses, reliable earnings, and long-term growth potential.
Here are three Australian shares I would be watching closely if that happened.
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BHP Group Ltd (ASX: BHP)
BHP is one of the highest-quality mining companies in the world and often finds its way onto my watchlist during market weakness.
The company has a portfolio of large, low-cost assets across commodities such as iron ore, copper, and metallurgical coal. These resources remain essential to global economic activity and long-term trends such as electrification and infrastructure development.
BHP's scale and balance sheet strength allow it to remain profitable even during weaker commodity cycles. It has also developed a strong track record of returning capital to shareholders through dividends when conditions are favourable.
If the market were to pull back and take BHP shares lower with it, I would see that as a chance to gain exposure to one of the world's leading resource producers.
Commonwealth Bank of Australia (ASX: CBA)
Commonwealth Bank continues to stand out as the highest-quality bank in Australia.
Its dominant retail banking franchise, large deposit base, and technology leadership have helped it consistently outperform its peers. That strength is one reason the market often assigns CBA shares a premium valuation compared to other banks.
In the event of a market correction, that premium can sometimes compress as investors reduce risk across the board.
For me, that could create an appealing entry point into a business that has demonstrated an ability to generate strong profits through different economic cycles.
Wesfarmers Ltd (ASX: WES)
Wesfarmers is another Australian share I would keep on my radar during a market pullback.
The conglomerate owns a portfolio of well-known businesses, with Bunnings being the standout performer. Bunnings has built a dominant position in the home improvement market across Australia and New Zealand, supported by strong brand recognition and a loyal customer base.
Beyond Bunnings, Wesfarmers also owns retail and industrial businesses that provide diversification across different sectors.
What stands out to me about Wesfarmers is its long history of disciplined capital allocation. Management has consistently demonstrated an ability to invest in growth opportunities while maintaining strong returns for shareholders.
If broader market weakness pushed the share price lower, it could create an interesting opportunity to buy into a high-quality Australian business.
Foolish takeaway
Market corrections can be uncomfortable, but they often provide opportunities to invest in strong companies at more attractive prices.
BHP, Commonwealth Bank, and Wesfarmers are three businesses with robust competitive positions and long-term growth potential. If the ASX were to pull back by around 10%, they would be among the Australian shares I would be looking at closely.
