UPDATE 2-FTSE heads for worst week in 4 months on China virus fears

* FTSE 100 down 0.9%, FTSE 250 down 1%
* China puts city of Wuhan on lockdown
* Banks fall across the board
* Miners weigh the most on main index
* ASOS shines on Christmas trading cheer

(Updates to closing prices)
By Shashwat Awasthi and Muvija M
Jan 23 (Reuters) - UK shares lost roughly 1% as worries over
the spread of a new flu-like virus from China forced dealers to
dump risky assets, while financial stocks tumbled across the
board after the European Central Bank kept interest rates at a
record low level.
The FTSE 100 .FTSE gave up 0.9%, marking its steepest
one-day drop in nearly two months and set for its worst weekly
performance since early October. The midcaps .FTMC ended 1%
lower.
An index of miners .FTNMX1770 hit its lowest in more than
a month with a 3.1% drop, in line with a fall in copper prices.
Losses came after China put Wuhan, the city at the centre of
the outbreak, on lockdown as health authorities around the world
scramble to prevent a global pandemic. The new coronavirus has
so far killed 17 and infected nearly 600 people.
InterContinental Hotels IHG.L slipped 4% after saying it
would let customers change or cancel for free stays scheduled up
to Feb. 3 across mainland China, Hong Kong, Macau and Taiwan as
spread of the SARS-like virus deters tourists. Other companies that rely on the travel market also took a
hit. Airline easyJet EZJ.L and cruise operator Carnival
CCL.L were among the worst performers on the main board, each
falling about 4%.
Banks .FTNMX8350 weakened on both benchmark indexes,
shedding 1.5% and in tandem with their European rivals after the
European Central Bank kept policy unchanged as expected.
Among midcaps, PayPoint PAYP.L skidded as much as 8% after
the specialist consumer payment provider said its annual profit
would grow at a more modest rate than previously expected. The
stock ended down 3.3%. Overall trading volumes were thin, with investors in Asia
preparing to go away for the Chinese Lunar New Year holidays.
"It is thus quite understandable that some money would be
taken off the table until the true extent of the coronavirus
issue becomes obvious," OANDA analyst Jeffrey Halley said.
However, AIM-listed online fashion retailer ASOS ASOS.L
provided some cheer as it advanced 9% after beating sales growth
expectations in the Christmas trading period. Liberum analysts said ASOS revenue growth was well ahead of
its consensus, suggesting that the company's focus on improving
operations and execution was delivering initial results.
Baby products retailer Mothercare MTC.L tumbled 11.2%
after saying reduction in debt owed to lenders, related to the
collapse of its UK business, had fallen behind expectations and
caused a shortfall of 10 million pounds. The company, which last year said it would close all its
British stores with the loss of at least 2,500 jobs, added that
its chief executive would step down.