I've found some good links on the mudra, that I've included below. It's not exhaustive, for depending on the type of Buddhism, there are literally hundreds of them.

The reasons for them are manifold.

For one, they are historical. There are many statues and shrines which show the ancient teachers with these hand positions.

Second of all, they are symbolic, and designed to remind the practitioner of a certain precept, concept, or ideal.

Third, they are very likely a focus, similar to reciting a mantra. In Zazen, for example, you're supposed to focus your breathing around your hara, or center (e.g. abdomen) and the circular hand position resting in your lap while seated helps you to maintain and strengthen this focus.

It can also be a type of behavioral conditioning, When you put your hands in a position, it helps you to achieve the mental state associated with that position. Non-meditation example: Like if you hear the theme music to Rocky it makes you want to jog around and pump your fists in the air. (Or perhaps that's just me.)

I have also seen suggestions that they are like a "spiritual antenna." But since I'm not terribly mystically inclined, I tend not to put a lot of stock in this suggestion. But your mileage may vary.
Source(s):
http://www.onmarkproductions.com/html/mudra-japan.shtml

http://www.mro.org/zmm/teachings/meditation.php


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