Rotation of polarization of light on transmission and reflection at materials with time-reversal breaking (Faraday and Kerr effects, respectively) have been studied for over a hundred years. We add to such phenomena by studying optical properties of magneto-chiral states which are loop currents with topological Hall effect. These break time-reversal and are chiral but the product of chirality and time-reversal is preserved. Qualitatively new features arise in reflection and transmission through such a state. This state is shown to be induced in underdoped cuprates given the observed magneto-electric loop-current order in cuprates and certain other specified condition. These results explain the observation of Kerr effects with unusual properties in the underdoped cuprates and help further confirm the nature of the symmetry breaking in underdoped cuprates.