Most of the time is a first step into intimacy. Holding and caressing hands, arms and nek are signals the man is trying to get closer without being openly sexual. This may be followed by resting his hand on your leg as hes approach progresses.
Look for other signs such as long eye contact.
Allowing those advances will definitely encourage him to move forward. If you feel uncomfortable you need to make that known to prevent a situation going out of hand.
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