From Dr. Ann Bigelow in Scientific American:
Particularly in the newborn period, it [skin-to-skin contact] helps calm babies: they cry less and it helps them sleep better. There are some studies that show their brain development is facilitated—probably because they are calmer and sleep better.
It seems to help the mothers, too. It reduces their stress level—they report lower levels of depression, they seem to be able to be more sensitive to their baby's cues and the babies are more responsive.... It works the same way with fathers, too.
Dr. Bigelow also touches upon the primacy of engagement and imitation which are so beautifully supported by the communication focus of infant massage.
While the window's particularly wide open in the early months, remember a parent's touch always carries incredible power for feeding babies' burgeoning brains as it strengthens bonds and improves whole families' peace of mind... so the news is all good!