Loki can do anything MM can do. Phasing, energy blasts, telepathy, etc. He might not be quite as strong physically, but he makes up for it with his magical might.
Loki loses to Thor all the time, but it's always a good fight. Heck, apparently he stalemated Surfer once (I remember Leonidas telling me about it once).
So yeah, a decent fight, but the Asgardian takes it.